U.S. appeals court rejects prediction markets in Nevada dispute

A federal appeals court in the 9th Circuit has ruled against prediction market platforms in a dispute over sportsrelated event contracts, siding with Nevada regulators. The decision says those contracts are not swaps under federal law, which weakens the platforms' argument that only the Commodity Futures Trading Commission should oversee them. The ruling affects Kalshi, Crypto.com, and Robinhood, all of which had sought to block Nevada from stopping their sportsrelated offerings. Nevada has argued the products amount to gambling and should fall under state gaming rules. The CFTC has taken the opposite view, saying event contracts are swaps that it regulates at the federal level. The case adds to a growing legal split between federal appeals courts, after a different circuit reached the opposite conclusion earlier this year. Legal experts say that conflict makes it more likely the Supreme Court will eventually decide who has authority over prediction markets.