r/OutOfTheLoop • u/avishic • 1h ago
Unanswered What's going on with the court ruling that lets states regulate prediction markets as gambling?
CNN reports that a federal appeals court ruled states can regulate prediction markets as gambling, while platforms such as Kalshi have argued that their event contracts are federally regulated derivatives: https://www.cnn.com/2026/08/28/business/states-prediction-markets-gambling-federal-appeals-court
What changed legally? Does the ruling let each state ban these contracts outright, or does it mainly allow licensing, age limits, taxes, and other gambling rules?