By SectorWire desk · · Updated
Two federal appeals courts disagree on whether sports event contracts constitute bets on 24 September. Three petitions are before the Supreme Court as Kalshi continues to record trading highs.
Conflicting appeals court positions leave prediction market operators facing disagreement over whether sports event contracts constitute bets.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The denial challenges Kalshi’s account of a tribal partnership.