Share 
This image was created entirely by AI with guidance from our editorial team.
The U.S. Court of Appeals for the Ninth Circuit denied Kalshi’s request for rehearing in its Nevada case. The decision leaves the prediction market company exposed to state gambling enforcement, CDC Gaming Reports and Sports Betting Dime reported.
The three-judge panel unanimously rejected rehearing. No judge requested a vote on rehearing the case en banc, a process involving broader court review.
Nevada Sports-Contract Ruling Stays in Place
Kalshi sought reconsideration after the appeals court upheld the dissolution of a preliminary injunction against Nevada gaming regulators, who see the contracts as sports betting.
According to CDC Gaming Reports, the underlying ruling held that sports-event contracts do not meet the definition of a swap. It also held that those contracts are not shielded from bans under state gambling laws, the outlet reported.
Nevada’s sports-event contract ban remains in place, according to CDC Gaming Reports.
In its 78-page petition, Kalshi argued that the decision conflicted with the Commodity Exchange Act, CDC Gaming Reports reported. The company also argued that the ruling created a circuit split over federal preemption, according to the outlet.
Kalshi said the ruling exposed it to civil and criminal liability despite compliance with federal regulation, CDC Gaming Reports reported.
Supreme Court Review and CFTC Rulemaking
Kalshi has 90 days to petition the U.S. Supreme Court for review, both outlets reported.
A separate federal rulemaking process is also underway. According to CDC Gaming Reports, the Commodity Futures Trading Commission issued two measures on October 9. Those were a Notice of Proposed Rulemaking and a companion Interim Final Rule addressing jurisdiction over event contracts, including sports-event contracts.
Public comments on the proposed rulemaking are due November 18, CDC Gaming Reports reported.
More from gamingtoday.com
- Kalshi Agrees to Block Nevada Users or Face $120,000 Daily Fine
- Better Markets Says Kalshi Missed Key Races, Urges CFTC to Ban Election Contracts
- DraftKings, FanDuel Pull Sports Prediction Markets From Utah After Kalshi Charges
—
Sources: As reported by CDC Gaming Reports and Sports Betting Dime.
