Nevada federal court rules sports contracts are not CEA swaps
A federal court in Nevada ruled that contracts based on sports outcomes do not qualify as swaps under the Commodity Exchange Act, according to the report. Judge Andrew Gordon rejected Kalshi’s argument that federal registration pre-empts state gambling laws. Nevada said it would oppose Kalshi continuing to serve residents without a state licence, and the company was reported to be prepared to appeal.
The ruling could require prediction-market platforms offering sports contracts to address state gambling licensing requirements.