9th Circuit sides with states in Kalshi gambling fight, potentially reviving Arizona's prosecution

Circuit Court of Appeals delivered a decision that sides with Nevada in its lawsuit against Kalshi, a platform for event‑prediction contracts. The court affirmed Nevada’s authority to ban Kalshi and comparable prediction‑market offerings, marking a clear endorsement that regulation of such markets rests with individual states rather than federal agencies.

Newser labeled the outcome a major win for states, and CBS News reported that the appellate ruling hands U.S. jurisdictions a decisive regulatory advantage. Market reaction was swift: Yahoo Finance noted DraftKings’ shares rose nearly 10 percent and Flutter Entertainment’s climbed about 8 percent, citing the court’s interpretation that sports bets do not qualify as swaps.

Engadget also highlighted the court’s alignment with Nevada’s ban. Observers will monitor whether additional jurisdictions file suits or whether Congress steps in to address the regulatory gap.