Aug 28 (Reuters) – A federal appeals court on Friday said Kalshi is not entitled to an injunction to block Nevada from overseeing its prediction markets platform, which allows people to bet on the outcome of sporting events.
In a 3-0 decision, the 9th U.S. Circuit Court of Appeals in San Francisco said the federal Commodity Exchange Act likely did not preempt Nevada’s gaming regulations as applied to the sports event contracts.
The decision creates a split with the 3rd U.S. Circuit Court of Appeals in Philadelphia, which in April said New Jersey cannot regulate Kalshi’s platform.
The ruling for Nevada increases the possibility that the Supreme Court may choose to decide whether states or the U.S. Commodity Futures Trading Commission should regulate the fast-growing prediction markets industry.
Kalshi, the Nevada Gaming Control Board and the CFTC did not immediately respond to requests for comment.
(Reporting by Jonathan Stempel in New York and Nate Raymond in Boston; Editing by Cynthia Osterman)
Comments