The Ninth Circuit Court has ruled that Nevada retains the authority to enforce its gambling laws against Kalshi. The court found that Kalshi was unable to prove that federal commodities law takes precedence over Nevada’s regulations concerning sports event contracts.
Kalshi contended that its contracts should be viewed as derivatives, which are regulated by the Commodity Futures Trading Commission (CFTC), suggesting that these contracts would fall under federal oversight, not state jurisdiction. However, the court's ruling indicated that it is doubtful the federal laws could override Nevada's regulations regarding gambling.
As a result of this ruling, Kalshi is restricted from engaging in sports and entertainment-related gambling operations in Nevada while the legal dispute continues. Aaron Ford, a spokesperson for the Nevada Attorney General, deemed the outcome a victory for the state, noting that Kalshi's attempt to categorize sports gambling as event contracts does not change its fundamental nature as gambling.
This decision follows a previous conflict between Kalshi and the state’s Nevada Gaming Control Board (NGCB).
