Prediction Markets Get Cold Reception Before Ninth Circuit (1)

Kalshi Inc., Crypto.com, and Robinhood Markets Inc. encountered a dubious US appeals court asked to decide whether federal law preempts their being regulated as gaming companies by the state of Nevada.

Judge Ryan D. Nelson was especially vocal in his skepticism of the prediction market companies, which told the US Court of Appeals for the Ninth Circuit Thursday they should be exclusively regulated by the federal Commodity Futures Trading Commission and not state gaming commissions.

Nelson, an appointee of President Donald Trump, said there appeared to be no material distinction between a traditional Las Vegas sports book ...