US court rules against Kalshi, says states can regulate prediction markets

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-26T06:40:33.889Z • Permanent link

Kalshi, a prediction market platform that enables users to bet on future events, has been dealt a significant blow by a US court. The ruling, which was announced on September 21, 2023, has far-reaching implications for the company and its customers. Kalshi's platform allows users to create and trade prediction markets on a wide range of events, from politics and sports to business and technology. The company's platform is designed to provide a more transparent and efficient way for people to engage with prediction markets, which are often used by researchers, policymakers, and investors.

The court's decision was made in a case brought by the state of New York, which argued that Kalshi's platform was operating outside of the state's regulatory framework. The court ultimately ruled in favor of the state, stating that prediction markets are subject to state regulation and that Kalshi's platform was not exempt from this regulation. Kalshi's CEO, Ryan Seemann, has been critical of the ruling, stating that it will have a negative impact on the development of prediction markets in the US.

The decision has also been met with criticism from some in the research community, who argue that it will limit the ability of researchers to use prediction markets to inform their work. Dr. Eric Buden, a professor of economics at the University of Chicago, has written extensively on the use of prediction markets in research and has been a vocal supporter of Kalshi's platform. He has stated that the court's decision will make it more difficult for researchers to use prediction markets to gather data and test hypotheses.

The implications of the court's decision will be felt far beyond the world of prediction markets. The ruling has significant implications for the broader financial infrastructure industry, which is heavily reliant on data and analytics to inform investment decisions. Companies such as Goldman Sachs and Morgan Stanley have already begun to develop their own prediction market platforms, and the court's decision may slow the growth of this industry.

The decision also has implications for the research community, which relies on prediction markets to gather data and test hypotheses. Researchers at institutions such as the University of California, Berkeley, and the Massachusetts Institute of Technology have already begun to develop their own prediction market platforms, and the court's decision may limit their ability to do so. The impact of the decision will also be felt in the world of finance, where prediction markets are increasingly being used to inform investment decisions.

The court's decision is part of a larger pattern of regulatory activity aimed at shaping the world of prediction markets. In recent years, regulatory bodies in several countries have begun to take a closer look at prediction markets, which have been criticized for their potential to facilitate illegal activities such as insider trading. The European Union, for example, has implemented regulations aimed at preventing the use of prediction markets for illicit purposes.