News Summary

• Kalshi lets users trade contracts based on event outcomes.
• The company has argued that its contracts are federally regulated financial products, not gambling.
• The Ninth Circuit Court of Appeals found that Kalshi's sports contracts amount to sports betting.
• The decision could have implications well beyond Nevada, particularly in states that have been trying to limit or block sports-related prediction markets.
• It could give regulators in those states more leverage as they challenge prediction-market companies..
• The Supreme Court will eventually decide whether federally regulated prediction exchanges can offer sports contracts without state gaming licenses.