Kalshi cannot block Nevada oversight of sports prediction markets, US appeals court rules

The 9th U.S. Circuit Court of Appeals in San Francisco has ruled that Kalshi, a prediction markets platform, cannot block Nevada's oversight of its operations. The court dismissed Kalshi's request for an injunction, stating that the federal Commodity Exchange Act likely did not preempt Nevada's gaming regulations as applied to the sports event contracts.

This decision creates a split with the 3rd U.S. Circuit Court of Appeals in Philadelphia, which had previously ruled that New Jersey could regulate Kalshi's platform. The ruling increases the likelihood that the Supreme Court may decide whether states or the U.S. Commodity Futures Trading Commission should regulate the rapidly growing prediction markets industry. Kalshi, the Nevada Gaming Control Board, and the CFTC have not yet commented on the ruling.

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