A US appeals court has allowed Nevada to regulate Kalshi, rejecting the prediction-market operator’s effort to prevent state oversight. The decision intensifies a wider dispute over whether platforms offering event-based contracts, including sports-related markets, should be treated as gambling businesses subject to state licensing rules or fall primarily under federal commodities regulation.

Nevada regulators and the state attorney general sued Kalshi in February, alleging it was operating without the required sports-gambling licence. Other states, including Connecticut, Rhode Island, New York and Arizona, have also challenged Kalshi’s activities, although a federal court ruled in April that New Jersey could not regulate the company; the unresolved question is whether states or the Commodity Futures Trading Commission should have final authority.