The Ninth Circuit Court decided that the state of Nevada has the right to enforce gambling laws against Kalshi.
According to the court ruling Kalshi has failed to demonstrate that the law regarding commodities overrides the ability of Nevada to regulate contracts for sports events.
Kalshi has claimed that all of its contracts can be classified as derivatives traded on a market supervised by the Commodity Futures Trading Commission (CFTC), meaning that they should be regulated by the Federal government rather than the state of Nevada. However, according to the court’s ruling, it is unlikely that the federal legislation can supersede Nevada gambling regulations.
The court’s decision means that Kalshi cannot undertake gambling operations related to sports and entertainment events in Nevada until the litigation process is still going on.
Spokesperson for the Nevada Attorney General Aaron Ford called the ruling a win for the state. According to the state office, the fact that Kalshi tries to reframe sports gambling into event contracts does not change the essence of gambling.
The ruling comes soon after the previous dispute between Kalshi and the state of Nevada Gaming Control Board (NGCB).
