DraftKings president of operations Paul Liberman said the operator would support the federal government taking a more active role in deciding the legality of sports event contracts, according to the report. The report also says Liberman suggested micro-betting prediction markets could be a future development.
A federal stance on sports event contracts could affect how DraftKings approaches prediction-market products.
Quarter ended 30 September 2026
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Kalshi’s legal dispute over sports event contracts could reach the US Supreme Court next year if another appeals court rules against the company, reportedly according to gambling industry lawyers. A Nevada appeals panel heard arguments this week, while the report says a separate appeals court had earlier ruled in Kalshi’s favour against New Jersey.
The US Court of Appeals for the Ninth Circuit ruled 3-0 for the Blue Lake Rancheria and Chicken Ranch Rancheria of the Me-Wuk Indians in part of their case against Kalshi and Robinhood. The panel found the tribes likely to succeed in arguing that Kalshi’s sports-event contracts on tribal lands violated the Indian Gaming Regulatory Act and tribal gaming ordinances, and sent the case back to the lower court to review remaining claims. The ruling did not order Kalshi to stop offering contracts in California.
Panelists at the Next Predict Summit in New York argued that states should not apply gaming laws to sports event contracts traded on federally regulated exchanges. Courts have split on whether the contracts are swaps under the Commodity Exchange Act, and the Supreme Court case involving New Jersey is pending.
Panelists at the Next Predict Summit in New York said states should not apply their gaming laws to sports event contracts traded on federally regulated designated contract markets. The panel discussion, titled "The Jurisdiction Gap: One ruling, Two Very Different Markets," took place on Friday. The industry position is that the contracts are federally regulated derivatives, and that the Commodity Exchange Act gives the Commodity Futures Trading Commission explicit jurisdiction over the transactions.
The CFTC issued two proposals concerning federal oversight of event contracts. The proposals would classify event contracts as swaps while prohibiting traditional gambling, with the expanded definition covering contracts linked to culture, weather, politics and sport.
The District Court for Arizona issued a preliminary injunction on 5 May 2026 barring the state from taking criminal or civil action against event contracts traded on CFTC-regulated designated contract markets. The ruling followed Arizona’s prosecution of Kalshi for operating without a state licence and the CFTC and Department of Justice’s challenge to the state’s enforcement.