Does this ruling immediately stop Kalshi's contracts in Nevada?

Yes, for now. The Ninth Circuit affirmed the district court's dissolution of Kalshi's injunction, so Nevada's 2025 cease-and-desist — which covers both Kalshi's election contracts and its sports event contracts — remains in force while Kalshi pursues further appeal, per The Block.

Why does the Third Circuit's ruling matter here?

Because it reached the opposite conclusion in April 2026, finding the CFTC has exclusive jurisdiction over Kalshi's sports-related contracts, per CBS News. Two circuits now disagree on the same legal question — the trigger CFTC spokesperson Zach Fulton cited for Supreme Court review, per PYMNTS.

Does Nevada's cease-and-desist cover only sports betting?

No. The Nevada Gaming Control Board's 2025 letter demanded Kalshi stop both its election and sports event contracts in the state, according to The Block; the Ninth Circuit's ruling addressed the sports event contracts specifically and did not carve election contracts out of Nevada's authority.

Who else was involved in the underlying Nevada case?

Crypto.com and Robinhood were named alongside Kalshi in the same Nevada Gaming Control Board proceeding, according to PYMNTS. The district court dissolved Kalshi's injunction after an earlier ruling against Crypto.com in that matter, per The Block, and Robinhood has said it will appeal, per PYMNTS.

Ninth Circuit Rejects Kalshi's Preemption Claim

A Ninth Circuit panel affirmed that Kalshi has not shown federal commodities law preempts Nevada's gaming authority, keeping intact a cease-and-desist that covers both Kalshi's election and sports event contracts, and deepening a split with an April 2026 Third Circuit ruling that favored Kalshi.

A Ninth Circuit panel ruled on August 28, 2026 that Kalshi failed to show the Commodity Exchange Act preempts Nevada's gaming law, upholding dissolution of Kalshi's injunction and leaving intact Nevada's cease-and-desist covering both Kalshi's election and sports event contracts. The ruling conflicts with an April 2026 Third Circuit decision; the CFTC says the split needs Supreme Court review.

The Ledger Desk August 29, 2026 Updated August 29, 2026 · 4 min read

The Ninth Circuit ruled that Kalshi 'has not shown a likelihood that the CEA preempts state gaming regulations as applied to its sports event contracts,' upholding the district court's dissolution of Kalshi's injunction, per The Block (Aug. 28, 2026).
The decision directly conflicts with an April 2026 Third Circuit ruling that found the CFTC has 'exclusive control over sports-related event contracts on Kalshi,' per CBS News — a live circuit split.
Nevada's 2025 cease-and-desist demanded Kalshi halt both its election and sports event contracts, not sports contracts alone, per The Block; that order remains in force pending further appeal.
Crypto.com, Kalshi, and Robinhood were all named in the same underlying Nevada Gaming Control Board proceeding, per PYMNTS; DraftKings and Flutter Entertainment shares rose 7.0% and 7.4% respectively in Friday trading after the ruling.
CFTC spokesperson Zach Fulton called the ruling erroneous — 'the only exceptions in statute are onions and movie box office receipts' — and said the split 'calls out for resolution by the Supreme Court,' per The Block and PYMNTS; Kalshi is separately, but not yet confirmed, reported to be in talks to raise $750 million at a $40 billion valuation, per CoinDesk (Aug. 13, 2026).

A Ninth Circuit panel ruled on August 28, 2026 that the Commodity Exchange Act does not preempt Nevada's gaming law as applied to Kalshi's sports event contracts, writing that Kalshi "has not shown a likelihood that the CEA preempts state gaming regulations as applied to its sports event contracts and that the district court did not abuse its discretion by dissolving the injunction," according to The Block. The ruling upholds dissolution of Kalshi's preliminary injunction. Nevada's 2025 cease-and-desist — which demanded Kalshi halt both its election and sports event contracts — stands.

The ruling deepens a circuit split, not settles one

The decision directly conflicts with the Third Circuit, which ruled in April 2026 that the CFTC has "exclusive control over sports-related event contracts on Kalshi," according to CBS News. CFTC spokesperson Zach Fulton called the Ninth Circuit's reasoning erroneous, saying the panel "invented a new and textual exception to the CEA" and that a swap "is a swap regardless of the underlying subject matter — the only exceptions in statute are onions and movie box office receipts," per The Block. The Nevada Gaming Control Board said the ruling confirms Kalshi's contracts are "sports betting" that "needs to be properly regulated by the state," per CBS News.

How Kalshi ended up in front of this panel

Crypto.com, Kalshi, and Robinhood were all named in the same underlying Nevada Gaming Control Board proceeding over their event-contract offerings, according to PYMNTS. The district court initially granted Kalshi a preliminary injunction before dissolving it, following an earlier ruling against Crypto.com in that same matter, according to The Block. Robinhood has said it intends to appeal the Ninth Circuit's decision, per PYMNTS; all three platforms' contracts covered by Nevada's cease-and-desist remain exposed to state enforcement while further appeals proceed.

The stakes: a funding story now riding on a legal thesis

The loss lands as Kalshi's fundraising, not its docket, is what investors are pricing: the exchange raised $1 billion in May 2026 at a $22 billion valuation and, as of August 13, 2026, was reported to be in talks with Sequoia Capital and Wellington Management for a $750 million round at a $40 billion valuation ahead of a possible 2027 listing, according to CoinDesk. That round has not closed, and the figures remain reported, not confirmed. A state-by-state patchwork Nevada can now enforce is exactly the tail risk a prospectus would have to price.

What happens next

Sportsbook incumbents read the ruling as bullish for their franchise licenses: DraftKings shares rose 7.0% and Flutter Entertainment rose 7.4% in Friday trading, according to PYMNTS. Fulton said the ruling "has now teed up a circuit split that calls out for resolution by the Supreme Court," per PYMNTS. With two circuits now split on the same statute, both the CFTC and the exchanges involved expect the next stop to be the Supreme Court.

Does this ruling immediately stop Kalshi's contracts in Nevada?: Yes, for now. The Ninth Circuit affirmed the district court's dissolution of Kalshi's injunction, so Nevada's 2025 cease-and-desist — which covers both Kalshi's election contracts and its sports event contracts — remains in force while Kalshi pursues further appeal, per The Block.
Why does the Third Circuit's ruling matter here?: Because it reached the opposite conclusion in April 2026, finding the CFTC has exclusive jurisdiction over Kalshi's sports-related contracts, per CBS News. Two circuits now disagree on the same legal question — the trigger CFTC spokesperson Zach Fulton cited for Supreme Court review, per PYMNTS.
Does Nevada's cease-and-desist cover only sports betting?: No. The Nevada Gaming Control Board's 2025 letter demanded Kalshi stop both its election and sports event contracts in the state, according to The Block; the Ninth Circuit's ruling addressed the sports event contracts specifically and did not carve election contracts out of Nevada's authority.
Who else was involved in the underlying Nevada case?: Crypto.com and Robinhood were named alongside Kalshi in the same Nevada Gaming Control Board proceeding, according to PYMNTS. The district court dissolved Kalshi's injunction after an earlier ruling against Crypto.com in that matter, per The Block, and Robinhood has said it will appeal, per PYMNTS.

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