Prediction market platforms Kalshi and Polymarket lost two state gambling appeals in Nevada and Washington, with a Ninth Circuit panel denying their emergency motions. This decision sends the enforcement cases back to lower courts, potentially affirming that prediction markets can be regulated as gambling. The ruling matters for crypto as Polymarket, a decentralized prediction market, operates on blockchain technology, facing regulatory headwinds that could impact other DeFi protocols. The key takeaway is the judicial affirmation that certain prediction markets may fall under traditional gambling laws. Watch for further state-level enforcement actions and their impact on decentralized finance innovation.
This story highlights the ongoing struggle between novel financial technologies and existing regulatory frameworks. The judicial system's classification of prediction markets as gambling signals a cautious approach to innovation, implying a challenging environment for DeFi growth in the US.
Kalshi and Polymarket lost bids to block gambling cases in Nevada and Washington. A three-judge Ninth Circuit panel denied emergency motions from both Kalshi and Polymarket to block lower court rulings, sending gambling enforcement cases in Nevada and Washington back…