Ninth Circuit Upholds Nevada Gaming License Requirement for Kalshi

A US appeals court has dealt Kalshi a significant setback in Nevada over its sports prediction contracts. The Ninth Circuit ruled that Kalshi likely cannot use federal law to bypass Nevada's gaming regulations, effectively upholding a state decision requiring the company to obtain a gaming license.

The ruling strengthens state authority over sports prediction markets and deepens the legal clash between Kalshi and the Commodity Futures Trading Commission (CFTC). It also raises regulatory risks for crypto prediction markets and related token or derivatives products in the US.