The Ninth Circuit Court has upheld Nevada's authority to enforce its gambling laws against Kalshi. The court determined that Kalshi could not establish that federal commodity laws take precedence over Nevada's regulations governing sports event contracts.
Kalshi argues that its contracts qualify as derivatives under the oversight of the Commodity Futures Trading Commission (CFTC), suggesting they should fall under federal jurisdiction rather than state control. However, the court concluded that federal legislation is unlikely to negate Nevada's gambling regulations.
As a result of this ruling, Kalshi's ability to conduct sports and entertainment-related gambling operations in Nevada is on hold while litigation is ongoing.
Aaron Ford, spokesperson for the Nevada Attorney General, hailed the decision as a victory for the state. The Attorney General's office asserted that Kalshi's attempt to redefine sports gambling as event contracts does not alter its fundamental nature. This ruling follows earlier issues between Kalshi and the Nevada Gaming Control Board (NGCB).
