Nevada’s Gaming Control Board chairman Mike Dreitzer said the state prohibits prediction markets covering sports, entertainment and politics and is litigating to defend that position. He said Nevada would consider predictive products if the people and companies offering them were licensed.
The board’s position sets out the licensing conditions Nevada would apply to predictive products.
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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.
Reportedly, a federal appeals court has rejected Kalshi's appeal, allowing Nevada to continue enforcing its gambling laws against the company's sports event contracts. The measure will remain in effect while the main lawsuit continues.
The Ninth US Circuit Court of Appeals ruled that Nevada can require a gaming licence for Kalshi sports-event contracts, finding Kalshi unlikely to show that federal law pre-empts the state requirement. Kalshi said it would seek further review and maintained that federal rules permit sports contracts; Nevada regulators are also pursuing contempt proceedings and a previously ordered daily penalty.
The US Ninth Circuit Court of Appeals unanimously upheld the removal of Kalshi’s preliminary injunction against Nevada authorities over sports-related contracts. The court treated the contracts as sports bets rather than swaps under federal law, allowing Nevada to apply its gambling rules; Kalshi said it would seek further review.
Representatives Steven Horsford and Mark Amodei introduced a bipartisan House bill that would bar federally registered trading platforms from listing sports and casino-style event contracts. The proposal would leave weather and economic contracts under Commodity Futures Trading Commission jurisdiction and preserve state and tribal gaming authority; its sponsors said it seeks to address differing oversight of these markets.