Kalshi, Polymarket lose 2 state gambling appeals
Crypto News
A federal appeals court rejected emergency motions from Kalshi and Polymarket to block state gambling enforcement actions.Summary
A Ninth Circuit panel denied emergency motions from both Kalshi and Polymarket to halt state-level gambling enforcement actions in Nevada and Washington. The judges ruled that federal derivatives oversight does not automatically shield prediction markets from state gaming laws, stating that the Commodity Exchange Act preemption defense is an affirmative defense that cannot create federal jurisdiction. The decision deepens a growing legal split over whether sports event contracts are federally regulated swaps or gambling products. The panel included judges appointed by President Trump, and the ruling came the same day Kalshi launched a new advocacy group.
(Source：Crypto News)