Ninth Circuit Upholds Nevada Sports Betting Regs in Kalshi Dispute
Kalshi, a prediction markets platform, suffered a setback in its fight against Nevada's sports betting regulations after the Ninth Circuit Court of Appeals upheld a lower court ruling. The appeals court concluded that Kalshi failed to demonstrate how federal law preempts Nevada's authority over sports betting.
According to the opinion, Kalshi had asked for a preliminary injunction to prevent Nevada from regulating its trading of sports and election event contracts after receiving a cease-and-desist letter from the Nevada Gaming Control Board in 2025. However, the district court dissolved the injunction later on, citing a previous ruling against Crypto.com.
The appeals court stated that Kalshi did not show sufficient likelihood that the Commodity Exchange Act (CEA) preempts state gaming regulations as applied to its sports event contracts.