A recent ruling by the U.S. Court of Appeals for the Ninth Circuit has affirmed Nevada’s authority to enforce its gaming laws against Kalshi, a prediction market platform offering sports-event contracts. This decision directly impacts players and bettors in Nevada by allowing the state to restrict Kalshi and similar platforms from operating within its borders.
The court’s ruling was welcomed by Nevada’s congressional delegation, who emphasized the importance of state and tribal regulation over gambling activities. Representative Dina Titus stated, “This is a positive step toward upholding our gaming laws in Nevada,“ highlighting the state’s comprehensive licensing and consumer protection systems designed to address risks associated with sports betting.
For players, this means that Kalshi and other prediction markets like Crypto.com and Robinhood are currently banned from offering sports-event contracts in Nevada. These platforms had previously operated in a regulatory gray area, raising concerns about consumer protections, licensing, and tax obligations. The ruling reinforces that betting on sports outcomes is considered gambling and thus subject to state gaming laws.
However, the legal battle is ongoing. Kalshi has announced plans to seek further review, and analysts expect the issue to reach the U.S. Supreme Court due to conflicting rulings in different federal circuits. This uncertainty means players and bettors should stay informed about the availability and legality of prediction market products in their states.
Representative Steven Horsford urged Congress to pass the bipartisan Prediction Markets Are Gambling Act, which would clarify that sports betting and similar gambling activities fall under state and tribal gaming regulations rather than federal financial market oversight. This legislation aims to close loopholes that allow companies to bypass consumer protections and licensing requirements.
Analysts note that the Ninth Circuit’s decision could encourage other states within its jurisdiction, including Arizona, California, and Washington, to consider similar bans on Kalshi’s sports-event contracts. Players in these states may see changes in access to such platforms depending on local regulatory responses.
Barry Jonas, an analyst with Truist Securities, noted that the ruling could drive more state bans and that the issue might take 10 to 22 months to reach a resolution, potentially through a Supreme Court decision. Dan Politzer of J.P. Morgan highlighted the split between circuit courts on whether the Commodity Futures Trading Commission (CFTC) or state regulators have jurisdiction over sports-event contracts.
For bettors, the ruling underscores the importance of engaging with licensed and regulated operators who provide consumer protections, responsible gambling measures, and clear tax compliance. Unregulated platforms may lack these safeguards, increasing risks for consumers.
As this legal situation develops, players should monitor updates on the status of prediction markets and sports betting regulations in their jurisdictions. Staying within regulated environments helps ensure safer betting experiences and access to support if gambling harm arises.
For more information on sports betting regulations and player protections, visit our Betting section and learn about Player Protection.
Read the full CDC Gaming report on the ruling here, and see additional analysis on prediction markets here.
- Nevada Court Upholds State Control Over Kalshi Sports - September 1, 2026
- Ninth Circuit Ruling Restricts Kalshi Sports Prediction - August 31, 2026
- Kalshi Faces Legal Challenges Over Prediction Market - August 30, 2026