Ninth Circuit backs Nevada power over Kalshi sports contracts

The U.S. Court of Appeals for the Ninth Circuit rejected Kalshi's argument that Nevada regulators cannot oversee its sports event contracts. The panel issued the unanimous ruling on Friday. The court said the Commodity Exchange Act likely does not preempt Nevada's gaming regulations as applied to Kalshi's contracts. Kalshi conducts the activity on a platform regulated by the Commodity Futures Trading Commission. The court disputed Kalshi's claim that the contracts were swaps under the Commodity Exchange Act. The ruling said the contracts were not swaps because they were sports bets.