States Pull Ahead in Prediction Market Fight
Federal courts are increasingly backing state gaming laws over prediction markets as the fight heads toward the Supreme Court.
The sands have shifted sharply below prediction markets in recent weeks as wins continue to arrive for states challenging their sports markets.
The appellate court scoreboard now reads 2-1 against Kalshi’s argument that federal commodities law overrides state gambling laws, with the latest blow coming from the Sixth Circuit as it stripped away Kalshi’s preliminary injunction against Tennessee.
An injunction is essentially a temporary court order that pauses something while a broader lawsuit plays out. In this case, it halted Tennessee’s enforcement of its gambling laws against Kalshi while the two sides fought over who actually had authority here.
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David Christopher
David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
