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Nevada has asked the Ninth Circuit to keep moving on Kalshi’s rehearing petition rather than pause the case while the Commodity Futures Trading Commission reviews proposed event-contract rules.
The filing keeps the focus on a core legal question for prediction markets: whether federal commodities law blocks states from enforcing their own gambling laws against sports-event contracts. For readers tracking online gambling regulation, the case is another sign that courts and regulators are still sorting out where prediction markets end and state-regulated betting begins.
Nevada says CFTC rulemaking should not delay the appeal
According to the filing, Nevada opposed Kalshi’s request to either grant rehearing en banc or hold the petition until the CFTC publishes a revised version of Rule 40.11. Kalshi made that request in a Sept. 25 letter.
Nevada’s submission, filed by Nicole Saharsky of Mayer Brown, argues that the CFTC’s plans were already known when the Ninth Circuit issued its decision and that a later rule change would not alter the court’s statutory analysis.
The CFTC has submitted two proposed prediction-market rules to the White House Office of Information and Regulatory Affairs for review. One would address the definition of swaps to include event contracts. The other would deal with excluding casino-style gambling products.
The case fits into a wider split over Kalshi and state enforcement
In August, a unanimous three-judge Ninth Circuit panel ruled that Kalshi could not block Nevada gaming regulators from overseeing its prediction-market platform. The panel said the Commodity Exchange Act likely does not preempt state gaming law.
That decision is part of a broader series of cases involving Kalshi. The Ninth Circuit also ruled in _Blue Lake Rancheria v. Kalshi_ that the CEA does not authorize sports betting on tribal land. Separately, the Sixth Circuit ruled that Ohio and Tennessee can enforce their sports-gambling laws against Kalshi.
But the legal picture is not uniform. In Illinois, a federal judge granted in part preliminary-injunction requests by Kalshi, Coinbase and the CFTC, finding that state gaming licensing rules conflict with federal law governing sports-event contracts.
What to watch next
The Ninth Circuit has not yet decided whether to grant Kalshi’s rehearing petition or hold it pending CFTC rulemaking. The other major item to watch is the final language of the CFTC’s proposed rules on event contracts and casino-style gambling products.
For now, the dispute remains a closely watched test of how much authority states have to police prediction-market products that resemble sports betting.
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Source: As reported by readwrite.com.
