Appeals Court Sides With Nevada Over Kalshi, Lifting DraftKings and Flutter

A US appeals court ruled that Kalshi cannot block Nevada regulators from overseeing its sports prediction markets, a setback for the exchange that has argued federal commodities law preempts state gaming rules. The ruling clears the way for Nevada to apply its own licensing and oversight regime to prediction-market products that compete with traditional sportsbooks. DraftKings and Flutter Entertainment, which owns FanDuel, rose after the decision. Both companies have lobbied against prediction-market platforms like Kalshi, which offer sports-outcome contracts without the state gaming licenses that traditional operators must hold. Investors read the ruling as reducing the near-term competitive threat those exchanges pose in regulated betting states. What remains unresolved is whether other states follow Nevada's approach, and whether Kalshi appeals further or seeks a narrower path to compliance in the meantime.