A U.S. court ruled that Kalshi has no authority to block sports betting regulation in Nevada

According to The Block, the U.S. Ninth Circuit Court of Appeals ruled that the prediction market platform Kalshi failed to prove that federal regulations take precedence over Nevada's regulatory authority over sports betting, and Kalshi is not entitled to an injunction.

Previously, the Nevada Gaming Control Board had issued a cease and desist order to Kalshi, requiring it to stop conducting contract trading related to elections and sporting events in the state, threatening to initiate criminal or civil proceedings. Subsequently, Kalshi sued the Gaming Control Board and the state, seeking a preliminary injunction to prevent Nevada from regulating its trading of sports and election event contracts. The district court initially granted the injunction but later revoked it following a ruling against Crypto.com. However, the appellate court stated on Friday: "We find that Kalshi has failed to demonstrate that the Commodity Exchange Act (CEA) likely takes precedence over state gaming regulations when applied to its sports event contracts, and we also find that the district court's decision to revoke the injunction did not abuse its discretion." The panel of judges stated: "The en banc court finds that the Commodity Exchange Act likely does not take precedence over Nevada's gaming regulations when applied to Kalshi's sports event contracts."