A U.S. appeals court ruled that Kalshi failed to show federal law overrides Nevada’s authority to regulate sports betting, allowing the state to enforce its gaming rules against the prediction market platform’s sports event contracts. The Ninth Circuit also held that Kalshi is not entitled to an injunction blocking Nevada’s actions. The dispute followed a cease-and-desist order from the Nevada Gaming Control Board requiring Kalshi to stop offering contracts tied to elections and sporting events in the state, with threats of criminal or civil action. Kalshi sued Nevada regulators and sought a preliminary injunction, which was initially granted by a district court before later being dissolved. The appellate panel said the Commodity Exchange Act likely does not preempt Nevada gaming laws as applied to Kalshi’s sports event contracts.