A US federal appeals court has ruled that Nevada may enforce its gambling laws against Kalshi’s sports-event contracts, rejecting the company’s argument that the contracts are federally regulated “swaps”. The decision matters because it challenges prediction-market operators’ efforts to offer sports betting nationwide without obtaining state gambling licences, despite support for federal oversight from the Trump administration and the Commodity Futures Trading Commission.

The Ninth Circuit upheld a lower-court order allowing Nevada to act after its Gaming Control Board sent Kalshi a cease-and-desist letter. Three Trump-appointed judges concluded unanimously that sports bets remain gambling regardless of their label, and said Kalshi’s broad interpretation of “swap” lacked a limiting principle; the ruling conflicts with a Third Circuit decision favouring New Jersey, increasing the chance of Supreme Court review.