CNN: Inside the casino industry’s fight to stop prediction markets
The ruling bolsters a broader push by casinos and state officials to curb a multibillion-dollar industry that bypasses state gambling taxes.
- On Friday, the Ninth Circuit Court unanimously ruled that states can regulate prediction platforms as gambling, handing a 3-0 victory to Nevada officials and Vegas casinos. The panel rejected Kalshi and Polymarket's claims that sports event contracts differ from traditional sportsbooks.
- Vegas casinos mobilized for 'all-out war' against prediction markets after platforms captured roughly $26 billion in sports volume this month. Derek Stevens, owner of three Vegas casinos and Circa Sports, argues the platforms mimic gambling and should not be exempt from law.
- Circa Sports experienced a 35% drop in sports handle this year, which Stevens attributes to prediction markets. TickerTracker data shows about 78% of Kalshi's volume this month, roughly $26 billion, came from sports and parlays.
- Attorneys general from 44 states urged the CFTC to crack down on prediction sites, while Congress debates bipartisan bills to limit the industry. House Speaker Mike Johnson and Minority Leader Hakeem Jeffries have both voiced support for a legislative ban.
- A likely Supreme Court clash looms over whether prediction platforms fall under federal guidelines or state laws. Experts believe the highest court will ultimately decide the industry's legal status amid intensifying regulatory tensions.
10 Articles
10 Articles
9th Circuit Says Nevada Can Regulate Kalshi Contracts as Gambling, Creating Circuit Split
The appeals court, in a break from a sister circuit, held that sports event contracts are bets—and not “swaps,” which fall under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission under the federal Commodity Exchange Act.
Kalshi claims 'selective-nonenforcement' in Washington as federal court finds states can regulate prediction markets
OLYMPIA – Online prediction market Kalshi says the Washington State Gambling Commission and the state attorney general’s office have engaged in “selective-nonenforcement” against other prediction markets, according to a letter obtained by The Spokesman-Review.
A federal court just ruled Kalshi's sports markets are basically sports betting
The Ninth Circuit Court of Appeals found that Kalshi's sports contracts amount to sports betting, even though the company offers them through a federally regulated exchange. The decision could have implications well beyond Nevada, particularly in states that have been trying to limit or block sports-related prediction markets.Read Entire Article
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Ninth Circuit Ruling Sets Up a Kalshi Supreme Court Fight on Sept. 3
New Jersey has until Thursday to ask the U.S. Supreme Court to review a Third Circuit decision protecting Kalshi’s sports event contracts from state gambling law. On Friday, a federal appeals court in San Francisco decided the same question the opposite way, handing the state the circuit split it told Justice Samuel Alito in June […]
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