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Ninth Circuit denies Kalshi bid to block Nevada sports betting rules
The court said Kalshi did not show federal law preempts Nevada gaming rules, and upheld the dissolution of a preliminary injunction tied to its sports event contracts.
Housing and betting regulators are at the center of a new fight between the prediction markets platform Kalshi and Nevada over how far federal oversight extends into state sports wagering. The dispute escalated after the Nevada Gaming Control Board sent Kalshi a cease-and-desist letter in 2025 over its election and sports event contracts, warning of potential criminal or civil charges.
According to The Block, Kalshi sued the board and the state and sought a preliminary injunction to stop Nevada from regulating its trading of sports and election event contracts. A district court initially granted that injunction, but later dissolved it after a separate ruling made against Crypto.com.
On Friday, the U.S. Court of Appeals for the Ninth Circuit backed the lower court. The appeals court said Kalshi did not show a likelihood that the Commodity Exchange Act preempts Nevada’s gaming regulations as applied to its sports event contracts, and it found the district court did not abuse its discretion in dissolving the injunction, The Block reports.
The Block added that a CFTC spokesperson said the appeals court misread the statute and regulations and that the case is now set up for a circuit split resolution by the Supreme Court. The panel also addressed whether jurisdiction belongs with the CFTC or state regulators in Nevada for sports betting and related contracts.