A federal appeals court has made a significant ruling regarding prediction markets. The court decided that states have the authority to regulate these markets as if they were gambling. This decision is seen as a major setback for the industry.

The ruling came from a panel of three judges and is considered the largest courtroom victory for states seeking to regulate prediction sites. The case began in Nevada, where regulators attempted to shut down a prediction site called Kalishi.

Further details about the ruling and its implications are available from the source. The matter is expected to be ultimately settled by the Supreme Court, as there are still related lawsuits pending.