By SectorWire desk ·
The US Ninth Circuit Court of Appeals ruled that Kalshi’s sports contracts constitute bets rather than swaps protected under federal law. The ruling concerns the legal classification of Kalshi’s sports contracts.
The ruling classifies Kalshi’s sports contracts as bets rather than swaps protected under federal law.
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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.