By SectorWire desk ·
Nevada argues in the Ninth Circuit that Kalshi’s reliance on North Carolina’s prediction market tax weakens its preemption case. Kalshi had cited the tax to argue that states can impose taxes alongside federal oversight.
Nevada challenges whether Kalshi’s support for state taxation alongside federal oversight strengthens its preemption case.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The denial challenges Kalshi’s account of a tribal partnership.