9th Circuit sides with states in Kalshi gambling fight

The 9th U.S. Circuit Court of Appeals has ruled that gambling on sports events is not protected by federal law, contradicting a previous decision by a federal judge in Arizona. The court's unanimous decision emphasizes that the Commodity Exchange Act amendment did not strip states of their traditional authority over gambling. The legal battle surrounding prediction market firm Kalshi marks a significant victory for states' regulatory power, potentially paving the way for the lifting of an injunction that halted Arizona's prosecution of Kalshi for violating their gambling laws.