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9th Circuit Rules States Can Regulate Prediction Markets as Gambling

8/29/2026

21 2 Full Breakdown

Summary

Story summary

The U.S. Ninth Circuit Court of Appeals ruled states may treat prediction-market platforms as gambling.
Three judges appointed by President Donald Trump issued the 3-0 decision.
Nevada’s Gaming Control Board moved to shut down Kalshi, prompting the case.
The court classified sports-event contracts as bets, not CFTC-regulated swaps.
The split with the Third Circuit may push the dispute to the Supreme Court.

History

Historical Context

Congress added the Unlawful Internet Gambling Enforcement Act to the SAFE Port Act, signing it on October 13 2006 to block financial transfers for illegal online wagers. The law built on earlier Wire Act disputes, narrowed by the Justice Department in 2011 and expanded in 2018. In 2024 the Ninth Circuit declared Kalshi’s contracts bets, a split with the Third Circuit now headed to the Supreme Court.

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Story summary

The U.S. Ninth Circuit Court of Appeals ruled states may treat prediction-market platforms as gambling.
Three judges appointed by President Donald Trump issued the 3-0 decision.
Nevada’s Gaming Control Board moved to shut down Kalshi, prompting the case.
The court classified sports-event contracts as bets, not CFTC-regulated swaps.
The split with the Third Circuit may push the dispute to the Supreme Court.

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