Kalshi loses Nevada appeal over sports event contracts

A three-judge federal appeals panel has rejected Kalshi’s attempt to block Nevada gaming regulators from enforcing state laws against its sports event contracts. Summary The Ninth Circuit found that Kalshi’s sports contracts are likely bets rather than swaps. The 3-0 ruling allows Nevada to enforce its gaming laws while litigation continues. The decision conflicts with an April ruling involving New Jersey and Kalshi. Nevada’s challenge to Kalshi’s election contracts will return to the district court. The U.S. Court of Appeals for the Ninth Circuit ruled on Aug. 28 that Kalshi had not shown the Commodity Exchange Act likely overrides Nevada’s gaming rules for sports event contracts. Kalshi sports contracts fall outside swap rules Writing for the unanimous panel, Circuit Judge Ryan Nelson said the federal commodities law gives the Commodity Futures Trading Commission exclusive authority over swaps traded or executed on a designated contract market. Kalshi operates a CFTC-regulated designated contract market, and the parties did not dispute that its sports contracts were traded through that venue. The court, however, found that the products likely do not qualify as swaps under the Com...