US Appeals Court Backs Nevada’s Authority to Regulate Kalshi Sports Contracts

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A federal appeals court has upheld Nevada’s authority to regulate sports event contracts, intensifying a fight between federal and state officials over control of prediction markets. The Commodity Futures Trading Commission sharply criticized the ruling and said the dispute could end up before the U.S. Supreme Court.

The Block reported on August 28 that the US Court of Appeals for the Ninth Circuit found Kalshi failed to show that the Commodity Exchange Act preempts Nevada gaming rules covering sports event contracts.

The appeals court also found that the lower court did not abuse its discretion in dissolving a preliminary injunction that had previously shielded Kalshi. The decision clears the way for Nevada to apply its own gaming regulations to Kalshi’s sports event contracts.