TECHNOLOGY · VERIFIED DEVELOPMENT
9th Circuit Declares Kalshi’s Sports Bets Subject to Nevada Gaming Laws
WHY IT MATTERS
The ruling curtails prediction markets’ ability to sidestep state gambling laws, tightening oversight for firms like Kalshi, Crypto.com, and Robinhood and reinforcing Nevada’s control over sports betting.
What happened
A federal appeals court ruled that Kalshi’s sports‑event contracts are gambling, not swaps, and therefore fall under Nevada’s gaming regulations. The panel of three Trump‑appointed judges upheld a district court order that allows the Nevada Gaming Control Board to enforce state law against Kalshi, Crypto.
com, and Robinhood. The decision came as the Trump administration sought to help prediction markets avoid state regulation.
Nevada Governor Joe Lombardo said the ruling confirms that sports‑event contracts must comply with the state’s gaming laws and regulatory framework. The court’s unanimous decision removes Kalshi’s argument that the Commodity Exchange Act preempts Nevada’s authority.
PRIMARY SOURCES
Court rules Kalshi sports bets aren't "swaps," just gambling with a different name
Ars Technica · Jon Brodkin · Discovery only; Condé Nast copyright terms apply