The Ninth Circuit let Nevada regulate Kalshi's sports contracts as gambling.
The panel found Kalshi had not shown that federal commodities law likely overrides Nevada's gaming rules.
- What the court held: The court upheld dissolution of an injunction that had blocked Nevada enforcement. It said Kalshi was unlikely to prove federal preemption for sports-event contracts.
- Why it matters: The ruling strengthens state authority over prediction-market sports products and conflicts with another federal appeals court's treatment of similar contracts.
- What remains: The case continues, including questions around election contracts. The decision addresses preliminary relief rather than finally settling prediction-market regulation nationwide.