Prediction markets suffered legal setbacks in two rulings this week as judges in Wisconsin and New York sided against the CFTC and Kalshi.
In New York, the Second Circuit denied Kalshi’s emergency motion for an injunction to prevent state authorities from enforcing gambling laws against the company. It has now referred the motion to a higher court for review. Meanwhile, in Wisconsin, a federal judge dismissed a case brought by the CFTC against a prediction market operator, ruling that the platform's contracts are not 'future delivery contracts' under the Commodity Exchange Act.
