US court rules against Kalshi, says states can regulate prediction markets

US appeals courts have varied on the regulation of prediction markets, opening the door to US Supreme Court debate.

x whatsapp-stroke copylink google Add Al Jazeera on Google info A laptop screen displays trades on the Kalshi website on April 16, 2026 [Jenny Kane/AP] By Al Jazeera Staff , Reuters and The Associated Press Published On 25 Sep 2026 25 Sep 2026 A United States appeals court has found that states can regulate prediction markets, ruling against a bid by the company Kalshi to exempt so-called event contracts from state gambling laws.

The Friday ruling by the 6th US Circuit Court of Appeals in Cincinnati is the latest in an unfolding debate about oversight of prediction markets, whose explosive growth has prompted ethical and regulatory questions.