A three-judge panel on the 9th Circuit unanimously ruled that Kalshi's sports event contracts constitute gambling under Nevada law and cannot evade state regulation by claiming federal preemption under the Commodity Exchange Act. The decision affirms Nevada's authority to enforce its gaming laws against Kalshi and similar platforms like Crypto.com and Robinhood offering sports-event contracts.
Background
Prediction markets like Kalshi operate under federal commodity trading regulations but have faced growing scrutiny from states over whether their sports-event contracts qualify as illegal gambling under state laws.
- Source
- Ars Technica
- Published
- Aug 29, 2026 at 06:14 AM
- Score
- 7.0 / 10