Federal Appeals Court Rules Kalshi Sports Bets Are Subject to Nevada Gambling Laws

<p>Kalshi lost a ruling regarding its ability to avoid state gambling laws, as a federal appeals court determined that Nevada can prohibit the prediction market from allowing sports bets. A panel of three judges, appointed by former President Trump, unanimously ruled against Kalshi in a decision from the US Court of Appeals for the 9th Circuit.</p><p>The Nevada Gaming Control Board stated that the 9th Circuit "emphatically reject[ed] the view that the federal Commodity Exchange Act preempts application of Nevada’s gaming laws to sports-event contracts offered by Kalshi, Crypto.com, and Robinhood." Nevada Governor Joe Lombardo indicated that "prediction markets offering sports-event contracts constitute gambling and must comply with Nevada’s gaming laws and regulatory framework."</p><p>The judges upheld a district court order that allows Nevada to enforce state laws against Kalshi’s sports-related event contracts.</p>