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.
The reversal changes the procedural position in the tribes’ case against Kalshi.
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US District Judge Jacqueline Scott Corley granted a preliminary injunction in Blue Lake Rancheria v. Kalshi in California on Wednesday. The order bars Kalshi from offering sports contracts on the plaintiff tribes’ lands and requires the tribes to provide boundary maps by 13 November; Kalshi must report its compliance steps within 21 days.
A San Francisco federal judge has blocked Kalshi from listing sports event contracts on land belonging to the California tribes that are suing it. Judge Jacqueline Scott Corley, who sits in the Northern District of California, granted the tribes a preliminary injunction on Wednesday in the case Blue Lake Rancheria v. Kalshi.
California tribes are considering a sports betting referendum while prediction-market operator Kalshi faced two court setbacks in New York. The report also covers regulatory developments in Ohio and other states.
CNIGA chairman James Siva said California tribes remain focused on 2028 for a tribally led online sports betting initiative to go before voters. Voter approval would be followed by compact renegotiation and ratification, he said. Siva also estimated that prediction markets could be costing tribal gaming revenues as much as 5%.
The US Court of Appeals for the Ninth Circuit denied Kalshi’s requests for panel rehearing and rehearing en banc in its Nevada case, leaving the ruling dissolving the preliminary injunction against Nevada gaming regulators in place. Kalshi has 90 days to petition the US Supreme Court; the sports-event contract ban remains in effect in Nevada, and the company says the ruling exposes it to civil and criminal liability.
On Wednesday, the Ninth Circuit turned down Kalshi's request to have the case reconsidered by the panel or by the full court. No judge asked for a full-court vote. The panel was unanimous in declining to rehear the matter, per the decision.
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.