9th Circuit rules in favor of states against Kalshi in gambling dispute

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The 9th Circuit Court of Appeals has sided with states in a legal battle against prediction market platform Kalshi over gambling regulations. The ruling potentially revives Arizona's ability to prosecute Kalshi under state gambling laws. The decision marks a significant setback for Kalshi, which had argued its contracts fall under federal commodity trading oversight rather than state gambling statutes. The case centers on whether prediction markets like Kalshi's should be regulated at the federal level or remain subject to individual state gambling laws. The ruling could have broad implications for the prediction market industry across multiple states.

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