Ninth Circuit ruling in Nevada against Kalsh sets up Supreme Court showdown

[The Buzz]

The Ninth Circuit has ruled 3-0 against Kalshi, holding that states can enforce their gambling laws against sports event contracts because those contracts do not qualify as “swaps” under the Commodity Exchange Act, dealing a major blow to Kalshi and other prediction markets.

The decision upheld lower-court rulings involving Kalshi, Crypto.com and Robinhood and sets up a potentially major showdown with the U.S. Supreme Court, particularly because federal appeals courts are now reaching conflicting conclusions on whether states can regulate or ban sports prediction contracts. New Jersey is expected to ask the Supreme Court to take up the case, with its petition deadline set for Sept. 3.

From InGame.com:

Kalshi losing streak
The ruling is the latest in what now looks like a clear courtroom losing streak for Kalshi. District courts in Connecticut, New York, Utah, Wisconsin, and Montana have all ruled against the prediction market in recent weeks. Previously, federal court decisions appeared to be close to a 50/50 split, but recently, the majority of courts have sided with states. Before Friday, Kalshi’s main solace was that the only appellate court to rule had sided with the prediction market.

The Ninth Circuit is the largest of the appeals circuits, covering Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington. Kalshi’s sports contracts are already banned in Nevada and Washington, and the ruling may encourage more states in the circuit to take similar action.

Though the Ninth Circuit also heard appeals from Crypto.com and Robinhood about their own bans in Nevada, and combined the appeals for oral arguments, Friday’s ruling deals only with Kalshi.

Circuit Court split sets stage for SCOTUS
The Ninth Circuit decision comes less than one week ahead of a Sept. 3 deadline for New Jersey to submit its appeal of the Third Circuit case to the Supreme Court. The deadline had been pushed back repeatedly.

Two circuit courts disagreeing is the most typical reason for the Supreme Court to take up a case, and those following the issue overwhelmingly believe that the court will take the case at some point.

Kalshi’s legal team includes the $3,250-an-hour Neal Katyal, one of the country’s best-known Supreme Court litigators, who has been more involved with authoring Kalshi’s briefs in recent months.

The Second, Fourth, Sixth, Seventh, and Tenth Circuits are all also hearing appeals regarding Kalshi’s sports event contracts.

Read more here: https://www.ingame.com/ninth-circuit...kalshi-scotus/

[The Buzz]

New Jersey on Wednesday asked the U.S. Supreme Court to block prediction markets from operating in the state, setting up a potentially landmark case that could determine the future of the fast-growing industry.

The petition marks the first time the nationwide legal fight over prediction markets has reached the Supreme Court. It comes after a series of recent rulings challenging the companies, including a federal appeals court decision that sided with states seeking to regulate prediction markets as gambling.

The Supreme Court is expected to decide later this fall whether it will hear New Jersey’s case. If the justices take it up, a ruling could come by the start of next summer.

More from CNN: https://edition.cnn.com/2026/09/02/p...urt-new-jersey