GoKawiil9th Circuit rules sports-event contracts aren't protected 'swaps,' hurting Kalshi
The 9th U.S. Circuit Court of Appeals ruled in a Nevada case that betting on sporting outcomes does not qualify as a federally regulated 'swap' under the Commodity Exchange Act, rejecting the broad interpretation that prediction-market firm Kalshi has relied on to argue states can't block its sports contracts. The decision undermines the reasoning Arizona federal judge Michael Liburdi used earlier this year to block Arizona's attorney general from prosecuting Kalshi under state gambling laws.
GoKawiil's interpretation of the reporting above, not reported fact.
Kalshi has expanded rapidly by claiming federal law preempts state gambling regulation for its event contracts, including sports and elections, since the CFTC has largely stayed out of the way. This ruling gives states like Arizona and Nevada a stronger legal foundation to reassert control over sports-related prediction markets, potentially forcing Kalshi to retreat from a major line of its business in multiple states.
- 9th Circuit rejected Kalshi's argument that sports outcomes count as regulated 'swaps'
- Ruling weakens the injunction protecting Kalshi from Arizona prosecution
- States may now have stronger grounds to enforce gambling laws against prediction markets
Source: azmirror.com — Jim Small, 2026-08-28
Published there as: “9th Circuit sides with states in Kalshi gambling fight”
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