States Escalate Crackdown on Prediction Markets as Legal Battle Widens

[madtrader]

Nevada’s action against Polymarket adds to growing state-level resistance against crypto-powered prediction markets across the US.

Last month, Tennessee regulators ordered platforms including Polymarket, Kalshi, and Crypto.com’s North American Derivatives Exchange to halt sports-related contracts for state residents, void existing trades, and issue refunds. Regulators argued the products amounted to sports betting and lacked sufficient consumer protections.

The dispute highlights a broader legal clash over whether prediction markets fall under CFTC derivatives oversight or state gambling laws. While Kalshi has won temporary protections in some states, courts in others—including Nevada—have ruled against it. The outcome could shape whether prediction markets face unified federal regulation or a fragmented state-by-state crackdown.

[bonk]

kalshi getting temporary protections in some states but losing in others = fragmented regulatory patchwork incoming.