Full Breakdown
Ninth Circuit Upholds Nevada’s Authority Over Kalshi’s Sports-Event Contracts
8/30/2026, 1:43:36 AM
Core Event
In late August 2026, the U.S. Court of Appeals for the Ninth Circuit rejected Kalshi Inc.’s attempt to block Nevada gaming regulators from overseeing its sports-event contracts. The panel held that the Commodity Exchange Act (CEA) does not pre-empt Nevada’s gambling laws, concluding that Kalshi’s contracts are “sports gambling” rather than federally regulated swaps. The decision affirms a district-court order dissolving a preliminary injunction that had allowed Kalshi to continue offering the contracts in the state.
Background & Context
Kalshi operates a CFTC-registered designated contract market where users trade contracts tied to real-world outcomes, including sports results. Nevada’s Gaming Control Board, citing the 2018 Supreme Court ruling that granted states the right to regulate sports betting, contended that the contracts constitute unlicensed wagering. Similar disputes are pending in roughly 20 states, creating a nationwide clash over prediction-market regulation.
Data & Statistics
- The Ninth Circuit panel voted 3-0 to reject Kalshi’s pre-emption claim.
- The Third Circuit earlier ruled 2-1 that the CFTC has exclusive jurisdiction over similar contracts, creating a circuit split.
- New Jersey must file a U.S. Supreme Court petition by the deadline of September 3.
- The CFTC sued Kentucky on June 23, expanding the multi-state litigation landscape.
Official Statements & Responses
Legal analysts note that the split between the Ninth and Third Circuits could prompt the Supreme Court to settle the jurisdictional question, given the growing financial size of the prediction-market industry.
Criticism & Opposition
Judge Jane R. Roth (Third Circuit) dissented in the earlier New Jersey case, arguing that Kalshi’s offerings are “virtually indistinguishable” from traditional sportsbook products and that state regulations complement the CEA. Her view underscores ongoing judicial disagreement about the proper regulatory venue.
What’s Next
The Ninth Circuit sent the case back to the district court to address Nevada’s challenges to Kalshi’s election contracts. With the circuit split unresolved, the Supreme Court may eventually be asked to decide whether states or the CFTC have primary authority over prediction-market contracts. New Jersey’s filing deadline of September 3 remains a key procedural milestone.
