Ninth Circuit lets Nevada enforce gambling rules on Kalshi’s sports contracts
A three‑judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco rejected Kalshi's attempt to prevent Nevada from regulating its sports‑event contracts, reversing a district‑court injunction that had treated the contracts as swaps. The judges said the contracts function as gambling and that the Commodity Exchange Act does not preempt Nevada's gambling laws. The ruling also sent the question of Kalshi's election‑event contracts back to a lower court for further consideration. Separately, Connecticut's attorney general filed a lawsuit accusing Kalshi of operating an illegal, unlicensed sportsbook, while Kalshi says its offerings are federally regulated derivatives and plans to pursue additional review.
How this was covered
- Left-leaning outlets covered this 5h later
- The two sides describe this in almost entirely different words
- Centrist coverage is the most divided on this story
Why it matters
The outcome determines whether Kalshi must obtain state gambling licenses before offering its prediction‑market contracts to consumers.
