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 Nevada can prohibit sports betting on prediction markets, rejecting Kalshi's claim that the federal Commodity Exchange Act preempts state gaming laws. The 9th Circuit unanimously found that the prediction market operator cannot evade Nevada's gambling regulations despite efforts by the Trump administration to support such platforms.
Nevada Governor Joe Lombardo emphasized that prediction markets offering sports-event contracts are gambling and must abide by the state's gaming laws and regulatory framework. The court affirmed a prior ruling allowing Nevada to enforce its laws against Kalshi's sports-related event contracts.
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