Court Bars Kalshi Sports Bets, Declares Them Gambling, Not Swaps

Kalshi sports bets ruled gambling, not swaps

The U.S. 9th Circuit Court of Appeals unanimously rejected Kalshi’s claim that its sports‑event contracts fall under the federal Commodity Exchange Act, stating they are plain‑vanilla gambling subject to Nevada law. ↓ 3 judges affirmed the district court order empowering the Nevada Gaming Control Board to enforce state statutes against Kalshi, Crypto.com and Robinhood.

“Prediction markets offering sports‑event contracts constitute gambling and must comply with Nevada’s gaming laws,” said Governor Joe Lombardo.

The ruling curtails the Trump administration’s broader effort to shield prediction markets from state regulation, a stance echoed by industry analysts in Reuters. Legal experts warn the decision may set a precedent for other jurisdictions, as highlighted by AP News.

Words by Sophia Mercer (Standby Geopolitical Analyst).
(Note: Sophia Mercer is covering this desk while Eleanor Cross is on sick leave.)