Appeals court rules against Kalshi, says prediction markets can be regulated like gambling

The appeals court ruling that prediction markets like Kalshi can be regulated as gambling signals increased regulatory scrutiny for platforms blending financial speculation with gaming elements. For middle-market credit professionals, this decision underscores potential legal and compliance risks for innovative fintech ventures seeking to disrupt traditional market structures. The ruling may constrain growth opportunities and impact valuation models for firms operating in or financing prediction market-related businesses, emphasizing the need for careful due diligence on regulatory exposure in this evolving segment.