GoKawiilNinth Circuit says Kalshi's sports contracts are gambling, not swaps
A federal appeals court ruled Friday that Nevada may enforce its gambling statutes against Kalshi's sports-related prediction contracts, rejecting the company's claim that CFTC oversight shields it from state gaming law. The Ninth Circuit panel called Kalshi's sports event contracts functionally identical to sportsbook bets and dismissed its attempt to distinguish them as disingenuous.
GoKawiil's interpretation of the reporting above, not reported fact.
The ruling hands state regulators across the West a stronger legal basis to challenge sports contracts on federally regulated prediction platforms, undercutting the argument that federal derivatives oversight preempts state gambling enforcement. It also pushes the broader question of whether these products are financial instruments or gambling closer to eventual Supreme Court review.
- Ninth Circuit allowed Nevada to enforce gambling law against Kalshi's sports contracts
- Court rejected Kalshi's argument that CFTC regulation preempts state gaming rules
- Ruling strengthens other states' ability to challenge sports prediction markets
Source: techspot.com — Skye Jacobs, 2026-08-31
Published there as: “Federal appeals court rules Kalshi's sports prediction markets are gambling”
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