States Can Regulate Prediction Markets as Gambling, Federal Appeals Court Rules

A federal appeals court has ruled that states may regulate prediction markets as gambling, potentially expanding state authority over event-based financial contracts. The decision could affect platforms offering wagers on sports, politics, elections, and other outcomes. Regulators may seek licensing requirements, consumer protections, age limits, and restrictions on certain markets. Companies operating prediction exchanges could challenge state rules or adjust their business models. The ruling is likely to influence debates over federal jurisdiction, gambling laws, and financial-market oversight nationwide.