(Photo by Anne-Marie Caruso/New Jersey Monitor)
The Ninth Circuit Court of Appeals delivered a win for Nevadaâs regulated sports betting industry Friday when a three-judge panel ruled that sports bets accepted by Kalshi are likely not swaps as determined by the Commodity Exchange Act. Â
The court rejected the arguments of prediction markets Kalshi, Crypto.com, and Robinhood, which asserted that federal law preempts state law.
Judge Ryan Nelson wrote that given âits broadest reading, the definition of a âswapâ… might cover the sports event contracts here and thus preempt Nevada law. But that broad reading is not the best textual reading in context, does not square with the statutory scheme, does not have a limiting principle, and would raise concerns under the major-questions doctrine.âÂ
The Major Questions Doctrine says that a federal agency must have explicit direction from Congress to decide an issue that is of major economic or political importance.
In April, the Third Circuit Court of Appeals ruled that New Jersey could not prohibit prediction markets from taking bets in that state. The conflicting rulings now set up a legal battle that is likely to land before the U.S. Supreme Court.Â
âWe are pleased with the Ninth Circuitâs ruling today in favor of Nevada. This completely vindicates what we have been saying all along,â Nevada Gaming Control Board Chairman Mike Dreitzer said in a news release. âThis is sports betting and needs to be properly regulated by the state.â
Gov. Joe Lombardo commended Dreitzer and the GCB âfor their diligent work to uphold Nevadaâs longstanding regulatory standards, safeguard the integrity of our gaming industry, and ensure the public can continue to have confidence in its oversight.â
In recent months, the GCB has attempted to enforce injunctions that prohibit Kalshi and other platforms from accepting bets.Â
The GCB was joined in the litigation by the Nevada Resort Association, which represents the stateâs casinos. The NRA did not immediately respond to a request for comment
This story was originally produced by Nevada Current, which is part of States Newsroom, a nonprofit news network which includes Washington State Standard, and is supported by grants and a coalition of donors as a 501c(3) public charity.
Source: Washington State Standard
This article was originally published by Washington State Standard.
