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US courts prepare to rule on prediction markets’ regulatory status

Regulation

US courts and regulators are expected to address whether prediction-market contracts fall under federal derivatives rules or state gambling laws, reportedly within six to 12 months, according to a Raymond James analysis. Kalshi and Polymarket are among the platforms affected, while state authorities argue sports betting should not be federalised.

The rulings could determine whether prediction-market operators face federal oversight or separate state gambling requirements.

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Regulation

US appeals courts schedule hearings in prediction-market disputes

US federal appeals courts scheduled proceedings in cases involving Robinhood Derivatives and Kalshi, according to reports. The First Circuit set oral arguments in Robinhood’s appeal of a jurisdictional dismissal in its challenge involving Massachusetts regulators; the Seventh Circuit granted Kalshi’s appeal of a ruling involving tribal gaming claims in Wisconsin.

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