US News Court rules Kalshi sports bets aren’t “swaps,” just gambling with a different name

[The Helper]

Kalshi today lost a major ruling over whether it can evade state gambling laws, as a federal appeals court found that Nevada can stop the prediction market from allowing sports bets. While the Trump administration is trying to help prediction markets avoid state regulation, a panel of three Trump-appointed judges unanimously ruled against Kalshi in today’s decision from the US Court of Appeals for the 9th Circuit.

The Nevada Gaming Control Board today said the 9th Circuit “emphatically reject[ed] the view that the federal Commodity Exchange Act preempts application of Nevada’s gaming laws to sports-event contracts offered by Kalshi, Crypto.com, and Robinhood.” Nevada Governor Joe Lombardo, a Republican, said that “prediction markets offering sports-event contracts constitute gambling and must comply with Nevada’s gaming laws and regulatory framework.”

The judges affirmed a district court order that let Nevada enforce state laws against Kalshi’s sports-related event contracts.

“KalshiEX, LLC advertises itself as ‘the first app for legal sports betting in all 50 states,’” wrote Judge Ryan Nelson. “As the volume of activity on Kalshi’s ‘sports betting’ platform ballooned, the Nevada Gaming Control Board sent a cease-and-desist letter notifying Kalshi that it was violating Nevada statutes and gaming regulations. Kalshi sought injunctive relief, arguing that it is not a legal sports betting platform but a designated contract market under the Commodity Exchange Act (CEA) offering legal sports event contracts. Kalshi argues that the Commodity Futures Trading Commission (CFTC) has exclusive regulatory authority over its sports event contracts and, therefore, Nevada’s gaming regulations do not apply.”

https://arstechnica.com/tech-policy/2026/08/kalshi-cant-evade-nevada-gambling-laws-by-calling-bets-swaps-court-rules/

 

[The Helper]

Kalshi bans ex-Congressman George Santos for life after concluding he likely was insider trading

NEW YORK (AP) — The online prediction market platform Kalshi said Monday that it has permanently banned former U.S. Rep. George Santos for his bets on whether he’d attend the State of the Union address and has fined and temporarily banned North Carolina congressional candidate Laurie Buckhout for bets she now calls a “dumb mistake.”

The company announced the ban on Santos, a Republican, after its Compliance Department found reasonable cause to believe Santos engaged in insider trading, contributing to speculation over whether he would attend the address before turning a $17,839 profit on his trading activity when he did not.

Kalshi spokesperson Elisabeth Diana said it was the first permanent ban in the company’s history. She said those affected by four other new enforcement cases announced Monday would be banned from trading temporarily because they cooperated with Kalshi’s probe.

The company also levied a $2,589 fine and three-year ban against Buckhout, a Republican and retired colonel who’s running against Democratic Rep. Don Davis in a swing district in northeastern North Carolina, and three-year bans on failed candidates for governor in California and Maine.

Kalshi bans ex-Congressman George Santos for life after concluding he likely was insider trading

The online prediction market platform Kalshi has permanently banned former U.S. Rep. George Santos after concluding the former Republican congressman likely engaged in insider trading when he made over $17,000 betting against his attendance at the State of the Union address.

apnews.com