On 28 August 2026, the Ninth Circuit Court of Appeals ruled unanimously that states can regulate prediction market platforms like Kalshi as gambling rather than financial swaps, handing states a victory against the emerging prediction-market industry. The ruling contradicted an April decision by the Third Circuit and set up a likely Supreme Court fight.
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The Ninth Circuit Court of Appeals ruled that sports-related event contracts are not swaps, contradicting a Third Circuit ruling from April.
Federal appeals court panel gives Nevada a win in its fight to regulate prediction market Kalshi AP News
Trading of sports event contracts on Kalshi constitutes gambling, appeals court rules in siding with Nevada officials.
The 9th U.S. Circuit Court of Appeals ruled that Nevada can enforce its gambling laws against Kalshi’s sports-related event contracts while litigation continues, rejecting Kalshi’s argument that federal commodities law preempts state oversight [cnbc.com#1][seattletimes.com#1][cbsnews.com#1][thenevadaindependent.com#1]. The unanimous panel found that the contracts are not federally regulated swaps
this outlet adds: company, effort, keep, operating, alone, three, judge, bets
The 9th Circuit Court of Appeals ruled states on Friday can regulate prediction market platforms like gambling and sportsbooks, dealing a heavy blow to the industry. In a unanimous ruling, a three-judge panel agreed with a lower court decision allowing Nevada gaming regulators to oversee the prediction market Kalshi, which argued only the federal government...
> A federal appeals court ruled Friday that states can regulate prediction markets like gambling, dealing a major blow to the booming industry.