The 9th US Circuit Court of Appeals ruled against Kalshi, allowing Nevada to regulate its prediction market platform. The decision overturns Kalshi's attempt to block state oversight and follows a February lawsuit by Nevada gambling regulators and the attorney general, who accused the platform of operating without a required sports gambling license.

This ruling contrasts with an April federal court decision stating New Jersey lacks authority to regulate Kalshi. The platform faces similar legal challenges in Connecticut, Rhode Island, New York, and Arizona. Connecticut's attorney general recently moved to ban Kalshi, alleging unlicensed sports betting.

The core dispute centers on whether states or the US Commodity Futures Trading Commission (CFTC) hold final regulatory authority over prediction markets. The CFTC has even sued three states that attempted independent action against Kalshi and Polymarket, highlighting significant regulatory confusion as these platforms rapidly expand.