The US Court of Appeals for the Ninth Circuit ruled unanimously 3-0 against prediction market platform Kalshi, dissolving a preliminary injunction that had shielded it from Nevada gaming regulators. The Court ruled on August 28, 2026 that Kalshi’s registration with the Commodity Futures Trading Commission as a designated contract market does not exempt it from state gambling laws. Sports event contracts are now vulnerable to state gambling enforcement actions within the Ninth Circuit’s jurisdiction. Questions regarding election contracts were remanded to the district court for further consideration. Kalshi may seek en banc rehearing or Supreme Court review.
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