Kalshi's Prediction Market Battle: Federal vs State Jurisdiction

Federal Judge Rules Against Kalshi in Nevada: A Prediction Markets Legal BattleA federal judge in Nevada has ruled against Kalshi, a prediction market platform, in a case involving state regulators. The judge determined that Nevadas laws and gaming commissions have jurisdiction over some of Kalshis sports-related contracts. This decision could significantly impact how prediction markets operate across the United States. Kalshi had argued that its event contracts, including those tied to sports outcomes, are swaps and therefore fall under federal oversight. However, the judge disagreed, stating that contracts based on sports outcomes are not swaps and thus are not under the CFTCs sole authority. Kalshi plans to appeal this ruling, and the outcome will likely shape the future of prediction markets, determining how they can offer contracts and under which regulatory framework they must operate.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.