Ninth Circuit Rejects Request to Rehear Kalshi’s Nevada Case

Kalshi’s sports markets won’t be returning to Nevada any time soon.

The US Court of Appeals for the Ninth Circuit officially rejected Kalshi's request to rehear its case involving sports contracts in Nevada. The Court unanimously ruled in August that the controversial offering doesn’t qualify as “swaps. As a result, it falls under Nevada state gambling laws.

All three Justices ruled against the request for a rehearing.

Our Kalshi review shows the operator has already restricted its prediction market offering in Nevada to comply with lower-court rulings, avoiding fines and additional penalties. With the Ninth Circuit rejecting the request to rehear its case, those restrictions are expected to remain in place.

With the request rejected, Kalshi can appeal to the U.S. Supreme Court. However, the court has already received a request to rule on sports contracts as part of a separate case the operator is fighting in New Jersey. That ruling will trickle down and resolve the dozens of pending sports-contract cases, including the one in Nevada.

In addition to Nevada, the Ninth Circuit also covers Alaska, Arizona, California, Hawaii, Idaho, Montana, Oregon, and Washington. The ruling gives those states a clear path towards taking similar action against Kalshi and other prediction platforms.

Kalshi Continues to Lose Markets

Not long ago, Kalshi proudly offered sports prediction markets in all 50 states. While it lost several lawsuits in lower-level courts, the appeals process and protection from the Commodity Futures Trading Commission allowed its sports contracts to remain available.

However, the tide has now turned against Kalshi as it reaches the final levels of the US court system. It has lost key appeals in the Ninth, Sixth, and Second Circuits, forcing it to restrict sports markets and certain controversial topics.

A favorable ruling from SCOTUS would undo the damage the operator has suffered, but it could take several months to issue. That leaves Kalshi and other prediction platforms with a choice: comply with court orders or risk facing financial and possibly criminal penalties.