Bankless · Friday, October 2, 2026
Prediction market platforms are facing increasing legal scrutiny, with New York suing Polymarket for allegedly operating an unlicensed gambling business. Simultaneously, a U.S. appeals court ruled against Kalshi, allowing states to regulate its event contracts as gambling. These developments suggest that the future of prediction markets may ultimately be decided by the U.S. Supreme Court, as multiple legal circuits have issued conflicting rulings.
“Also, New York has sued Polymarket. A federal court has ruled that states can regulate Calci. And it seems like we're all taking this to the Supreme Court is just looking more and more inevitable these days.”
“The state of New York has filed a lawsuit against prediction market company Polymarket saying that the platform is operating an unlicensed gambling business in New York.”
“A U.S. appeals court on Friday ruled against the prediction market operator, Kalshi, saying Ohio and Tennessee can regulate its so-called event contracts under their gambling laws.”
“And so it seems kind of inevitable that this is heading to the Supreme Court.”