EmbeddingGemma 2: an open, lightweight multimodal embedding model
deepmind.google·6d ago
AI Engineering
Hacker News·Aug 28·5 min read
9th Circuit sides with states in Kalshi gambling fight
TL;DR
The 9th U.S. Circuit Court of Appeals ruled that gambling on sports events is not protected under federal law, undermining a previous injunction that favored Kalshi, an online prediction market company.
✦ Why It Matters
Consider reviewing your compliance strategies if your business involves prediction markets or gambling.
Key Takeaways
- Understand the implications of the 9th Circuit ruling on prediction markets.
- Review state gambling laws to ensure compliance.
- Prepare for potential changes in federal regulation of sports betting.
- Monitor ongoing legal battles that may affect prediction market operations.
Full Summary
A recent ruling by the 9th U.S. Circuit Court of Appeals clarified that betting on sports events does not qualify as a 'swap' under the federal Commodity Exchange Act, which previously allowed prediction markets like Kalshi to operate with minimal oversight.
This decision directly contradicts a prior ruling by a federal judge in Arizona, who had blocked the state from prosecuting Kalshi for violating local gambling laws. The appellate court emphasized that Congress did not intend to eliminate state regulations on gambling when amending the Commodity Exchange Act.
As a result, Arizona can now pursue its case against Kalshi, potentially resuming a stalled criminal case. This ruling highlights a significant legal divide, as it contrasts with a previous decision from the 3rd U.S.
Circuit Court of Appeals that favored Kalshi. The implications of this ruling could lead to a Supreme Court battle over the extent of federal authority in regulating sports betting.