U.S. to Define Regulation of Kalshi Betting

The U.S. Supreme Court could clarify state laws on sports betting, which would affect prediction markets in LATAM. Gaming regulators, 39 states, and the NFL are asking for a determination on whether federal legislation protects sports contracts from state laws. The International Association of Gaming Regulators (IAGR) and the North American Association of Gaming Regulators (NAGRA) filed a joint brief on October 2, followed by Ohio and 38 other states on October 7, and the NFL the next day. The conflict arises from contradictory decisions by federal courts; the Third Circuit ruled in favor of Kalshi, while the Sixth and Ninth Circuits ruled against it. Ohio's brief, supported by states like California and New York, questions whether prediction markets can circumvent state laws by presenting themselves as financial contracts. The NFL reported that $1.8 billion of the $3.3 billion traded in prediction markets during the first Sunday of the season was linked to its games. On October 2, a federal judge in Chicago granted Kalshi a partial victory in Illinois. The company must submit its response to the petition by November 9. This case could influence the regulation of prediction markets in Latin America, where Brazil blocked 27 platforms in April 2026. The U.S. Supreme Court's decision could serve as a reference for future regulatory discussions.

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