Court rules Kalshi sports bets aren't "swaps," just gambling with a different name
Kalshi can't evade Nevada gambling laws by calling bets "swaps," judges rule.
A federal appeals court has ruled that Kalshi, a prediction market company, cannot evade Nevada's gambling laws by labeling its sports bets as swaps rather than gambling. The US Court of Appeals for the 9th Circuit unanimously sided with Nevada, stating that the federal Commodity Exchange Act does not allow Kalshi to avoid state regulation.
Governor Joe Lombardo of Nevada emphasized that prediction markets offering sports-event contracts are gambling and must comply with state laws. The decision effectively puts an end to Kalshi's attempts to circumvent Nevada's gambling regulations.
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