Ninth Circuit rules against Kalshi in 3-0 vote, letting Nevada enforce gaming laws on prediction markets

Kalshi just lost a big one. The US Court of Appeals for the Ninth Circuit ruled unanimously against the prediction market platform, dissolving a preliminary injunction that had previously kept Nevada’s gaming regulators at bay. The 3-0 decision in KalshiEX, LLC v. Assad means states can now move forward with enforcement actions against Kalshi’s sports event contracts. The core question was deceptively simple: does Kalshi’s status as a CFTC-registered designated contract market make it immune to state gambling laws? The Ninth Circuit’s answer, delivered on August 28, 2026, was a firm no. Federal shield, meet state sword Kalshi’s argument rested on what seemed like solid ground. The company is registered with the Commodity Futures Trading Commission as a designated contract market, or DCM. Under the Commodity Exchange Act, the CFTC holds exclusive jurisdiction over futures and event contracts. Kalshi argued this federal framework should preempt state-level gaming regulations. The Ninth Circuit found that Kalshi failed to demonstrate that the CEA actually preempts Nevada’s gaming regulations when it comes to sports event contracts. This wasn’t a snap judgment either. The case had been...