GoKawiil9th Circuit sides with Nevada, says Kalshi sports contracts are gambling
A unanimous three-judge panel on the US Court of Appeals for the 9th Circuit ruled that Nevada can enforce its gambling laws against Kalshi's sports-related event contracts, rejecting the company's claim that federal commodities law shields it from state oversight. The decision upholds a lower court order allowing Nevada's Gaming Control Board to act against Kalshi, Crypto.com and Robinhood over sports-event contracts offered on their platforms.
GoKawiil's interpretation of the reporting above, not reported fact.
Kalshi has built its business on the argument that its contracts are federally regulated financial instruments, not gambling products subject to state licensing. This ruling undercuts that strategy in a key jurisdiction and signals that courts may not accept the 'prediction market' framing as a way to bypass state betting laws, even as the Trump administration has been sympathetic to such platforms.
- 9th Circuit unanimously ruled Nevada can enforce gambling laws against Kalshi's sports contracts.
- Judges rejected Kalshi's claim that federal commodities law preempts state gaming regulation.
- Ruling also implicates Crypto.com and Robinhood, which offer similar sports-event contracts.
Source: arstechnica.com, 2026-08-28
Published there as: “Court rules Kalshi sports bets aren't "swaps," just gambling with a different name”
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