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.
Mansour disputed the court’s description of Kalshi and said agreements with the NFL or NBA were under consideration.
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It was reported that the Ninth Circuit ruled in favour of tribal gaming interests a day after the Senate failed to advance the CLARITY Act. The outlet said the prediction market dispute remains unresolved at the CFTC.
Two California Tribes, Blue Lake Rancheria and Chicken Ranch Rancheria, persuaded the Ninth Circuit that their IGRA claim against Kalshi is likely to prevail, and the appellate court reversed the district court on the central legal questions. That outcome arrived one day after the Senate declined to move the Digital Asset Market Clarity Act (CLARITY Act) forward. The dispute now goes back before the district court in the Blue Lake matter, while the larger question of the Commodity Futures Trading Commission's (CFTC) authority remains open.
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.
The Ninth Circuit ruled in a Nevada case that federal law does not bar states from applying gambling laws to Kalshi’s sports-event contracts. Arizona Attorney General Kris Mayes said she is reviewing the ruling; it does not resolve Arizona’s separate case over election-related contracts, which remains blocked by a federal judge.
The Ninth Circuit backed states’ authority to apply gambling rules to prediction platforms. The decision challenges platforms’ argument that federal commodities regulation protects them from state oversight. The report says 44 state attorneys general are pressing for stricter limits.
The Ninth Circuit unanimously ruled against Kalshi on Friday. The outlet said an earlier Third Circuit ruling favouring Kalshi created a circuit split that could bring the dispute before the Supreme Court. Polymarket offers a market on whether the Supreme Court will hear the case.