- A federal appeals court ruled that Nevada can enforce their gambling laws against Kalshi on Friday.
- Kalshi argued that the Commodity Futures Trading Commission (CFTC)’s federal regulation meant Nevada’s gaming regulations didn’t apply to them, but the ruling says that’s not the case.
- The Nevada Gaming Control Board, Nevada Governor, and American Gaming Association applauded the decision.
LAS VEGAS – The U.S Court of Appeals for the Ninth Circuit affirmed a decision to dissolve a Kalshi temporary injunction, allowing Nevada to impose their state gambling laws on Kalshi’s sports event contracts. The three-judge panel decided that the sports event contracts weren’t swaps because they’re sports bets, disagreeing with Kalshi’s interpretation of the Commodity Exchange Act.
According to the court ruling, “The panel affirmed in part the district court’s order dissolving a preliminary injunction in favor of KalshiEX, LLC, and remanded in part in Kalshi’s action against the Nevada Gaming Control Board, which sent a cease-and desist letter notifying Kalshi that it was running a sports betting platform in violation of Nevada statutes and gaming regulations.”
With the decision, the Nevada Gaming Control Board can prohibit Kalshi’s sports event contracts if they wish. Dissolving the preliminary injunction concludes the state’s legal battle with prediction markets that started more than a year ago.
Court Decision Applauded By Nevada and AGA
Nevada Gaming Control Board Chairman Mike Dreitzer commented on the Ninth Circuit ruling in favor of Nevada, stating that “We are pleased with the Ninth Circuit’s ruling today in favor of Nevada. This completely vindicates what we have been saying all along. This is sports betting and needs to be properly regulated by the state. The Nevada Gaming Control Board has been regulating gaming in the state of Nevada for more than 70 years in accordance with the highest standards and best practices. We will continue to vigorously enforce Nevada law to safeguard gaming in our state.”
The public comment from the Nevada Gaming Control Board also included a statement from Governor Joe Lombardo, who stated that “sports-event contracts constitute gambling and must comply with Nevada’s gaming laws and regulatory framework.” The decision separates event contracts from legal sports betting, a decision also applauded by the American Gaming Association.
AGA’s Bill Miller: today’s Ninth Circuit decision is a win for consumers and taxpayers. ⬇️ pic.twitter.com/SY3KAG3Wmy— American Gaming Association (@AmericanGaming) August 28, 2026
