Kalshi asked the full Sixth Circuit to reconsider its 25 September ruling allowing Ohio and Tennessee to pursue enforcement under state gambling laws. The company argues that federal commodities law gives the CFTC authority over contracts traded on designated exchanges; the court has not accepted that argument.
The court’s decision could determine whether states can pursue gambling-law enforcement over Kalshi’s sports contracts.
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The US Court of Appeals for the Ninth Circuit reversed a district court ruling that denied two California tribes a preliminary injunction against Kalshi, according to the report. The available text provides no further details on the court’s reasoning or the next steps.
Kalshi chief executive Tarek Mansour disputed the Ninth Circuit’s description of the company as a sports betting platform, according to his interview. He said agreements with the NFL or NBA were under consideration and that an announcement from at least one league could come soon.
The Ninth Circuit ruled against Kalshi over sports event contracts in Nevada. The court returned a separate question concerning election contracts to the district court, leaving the federal pre-emption issue unresolved.
The Ninth US Circuit Court of Appeals revived a lawsuit by Blue Lake Rancheria and Chicken Ranch Rancheria alleging that Kalshi offered unauthorised gambling to people on their California reservations. The unanimous panel said sports contracts could be treated as wagers despite their contractual label, but did not order Kalshi to stop offering them; it returned the case to the district court.
The Ninth Circuit Court of Appeals ruled that sports event contracts at issue in Nevada fall under gambling rules rather than federal swaps law. The court rejected injunction requests from Kalshi, Crypto.com and Robinhood. DraftKings shares gained up to 10%, while Flutter shares rose up to 8%.
A federal appeals court has determined that the sports-related event contracts under scrutiny in Nevada count as gambling products, not swaps regulated by federal commodities law, per a report. Under that outcome, the Nevada Gaming Control Board may keep enforcing state gaming law against such offerings within the state. Kalshi, Crypto.com and Robinhood had asked for injunctive relief to block Nevada regulators from shutting down their sports-related event contract offers in the state, and the court turned those requests down.