Appeals Court Rules Prediction Markets Should Fall Under Gambling Regulations

A federal appeals court has ruled that prediction markets should be regulated as gambling, contradicting an earlier decision by a separate appeals court. The conflicting rulings have created a legal split at the appellate level over how such markets should be classified and overseen. Federal regulators highlighted the contradiction between the two decisions, arguing it warrants intervention by the Supreme Court. The case raises broader questions about the legal status of prediction markets, which allow users to bet on the outcomes of real-world events.