Robinhood Markets (HOOD), Kalshi and Crypto.com's requests for injunctive relief against the Nevada Gaming Control Board were rejected by the Ninth Circuit Court of Appeals, concluding that sports-related event contracts are not regulated by the federal government, multiple news outlets reported Friday.
The appeals sought to prevent Nevada from stopping prediction market platforms from operating, which the state categorizes as gambling offerings outside of the Gaming Control Board's framework, CNBC reported.
While states argue sports event contracts are essentially sports betting, prediction market providers, backed by the US Commodity Futures Trading Commission, claim their event contracts are hedging derivatives on federally regulated platforms under the Commodity Exchange Act, Bloomberg Law said.
Robinhood Markets, Kalshi, and Crypto.com did not immediately respond to requests for comment from.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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