"Kalshi has a gambling problem," the 9th Circuit Court of Appeals wrote last Friday, when it ruled that the Commodity Exchange Act (CEA) did not preempt Nevada from enforcing its gambling laws against prediction market Kalshi's sports-related event contracts.
Now, thanks to the decision—which affirmed an earlier ruling by a district court— prediction platforms like Kalshi, Crypto.com, and Robinhood will no longer be able to offer sports event contracts in Nevada. The decision could also clear the way for other 9th Circuit states like Arizona—where Kalshi was granted an injunction in May—to enact their own regulations governing prediction markets.
