Prediction market operator Kalshi has been was reined in, after a federal appeals court in Nevada refused to allow it to resume trading sports and election contracts in the state without a gambling license.
A panel of judges from the Ninth U.S. Circuit Court of Appeals ruled that Kalshi had not made a persuasive case that federal commodities law prevented Nevada from enforcing its gambling regulations against the company’s sports event contracts. The court indicated that federal law likely does not preempt Nevada’s authority to regulate contracts tied to sporting events. The panel sent the question of Kalshi’s election contracts back to a lower court to consider Nevada’s challenges.
