Morning Edition · Sunday, August 30, 2026Published at 1:48 AM EDT · New York

Appeals Court Lets States Regulate Prediction Markets as Gambling, Splitting the Federal Courts

The Ninth Circuit ruled against Kalshi three days before a builder deployed the first permissionless outcome exchange on Hyperliquid, where no licensing question arises at all.

A three-judge panel of the United States Court of Appeals for the Ninth Circuit ruled unanimously that states may regulate prediction-market platforms as gambling, a decision against Kalshi in its dispute with Nevada regulators. The panel f…