A federal appeals court ruling allows states to regulate prediction markets as gambling, impacting the growing industry. The decision, made by a panel of three judges, is a significant victory for states seeking to regulate these sites.

The case originated from a dispute involving the Kalshi prediction site in Nevada. Prediction sites like Kalshi and Polymarket enable users to wager on various events and outcomes.

Further details on the ruling and its implications are available, including the potential for the matter to be settled by the Supreme Court due to pending lawsuits across the country.