--- title: "Appeals court sides with Nevada in prediction market regulation fight" publication: "MediaBias News" url: "https://mediabias.news/politics/appeals-court-sides-with-nevada-in-prediction-market-regulation-fight" api: "https://mediabias.news/api/v1/stories/appeals-court-sides-with-nevada-in-prediction-market-regulation-fight" markdown: "https://mediabias.news/politics/appeals-court-sides-with-nevada-in-prediction-market-regulation-fight.md" audio: "https://mediabias.news/api/audio/appeals-court-sides-with-nevada-in-prediction-market-regulation-fight" category: "Politics" area: "United States" published: "2026-08-28T22:05:13.873Z" source_reported: "2026-08-28T21:34:09.000Z" updated: "2026-08-28T22:05:13.873Z" trust_score: 60 critic_score: 70 hype_score: 20 assessment_type: "coverage-and-source-reporting-analysis" fact_check_status: "not-performed" coverage_measured: "2026-08-28T22:00:19.599945+00:00" --- # Appeals court sides with Nevada in prediction market regulation fight *Ruling states Kalshi's sports contracts are gambling, not federally regulated swaps.* **Scores for the source reporting** (0-100, assessing the original journalism this article was written from, not this write-up): - Trust 60 of 100, higher is better. The central claim is attributed to a named body and two independent outlets covered the story. - Craft 70 of 100, higher is better. The reporting includes quotes from affected parties and names specific entities and dates. - Hype 20 of 100, lower is better. The language used is measured and proportionate, with no sensationalism or manufactured urgency. Scored by MediaBias News; method at https://mediabias.news/methodology. **The short version** - A federal appeals court rejected Kalshi's attempt to prevent Nevada from regulating its prediction markets. - The 9th Circuit Court of Appeals ruled that Kalshi's prediction market contracts for sporting events are sports bets, not federally regulated swaps. - The court found that federal commodity trading law does not prevent Nevada from applying its gambling regulations to Kalshi's sports event contracts. - The ruling is part of a broader legal battle involving about 20 states over the regulation of prediction markets. A federal appeals court has ruled that Nevada can regulate Kalshi's prediction markets, rejecting the company's efforts to block state oversight. The 9th Circuit Court of Appeals determined that Kalshi's contracts based on sporting events are sports bets and not federally regulated financial swaps. This decision represents a significant victory for states asserting their authority over prediction market platforms. ## Conflicting rulings on federal preemption The 9th Circuit Court of Appeals stated that Kalshi failed to demonstrate that the Commodity Exchange Act preempts Nevada's gambling laws. In its written opinion, the court noted that the substance of the contracts offered on Kalshi's platform is sports gambling, irrespective of how the company labels them. This ruling contrasts with a previous decision by the 3rd U.S. Circuit Court of Appeals, which had concluded that the Commodity Futures Trading Commission (CFTC) has exclusive authority over sports-related event contracts on Kalshi. The 9th Circuit panel sent the question of Kalshi's trading on election contracts back to a lower court for further consideration. ## What the coverage left out None of the left- or centre-rated reports mentioned the specific cost estimate for the prediction market contracts, if any were provided. The full reports from CBS News and Associated Press News did not include details on the financial value of the contracts or the potential economic impact of the ruling. ## Who covered it Shares of the 9 covering outlets with a published leaning rating: - Left: 33% (3) - Centre: 67% (6) - Right: 0% (0) 0 of 9 covering outlets carried no usable leaning rating and were excluded from those percentages. Coverage measured 2026-08-28T22:00:19.599945+00:00. **Coverage watch:** developing. Checked 1 time; 0 checks found a material change. Most recently checked 2026-08-28T22:15:11.320Z. ## How the sides framed it ### Left - Left-rated reports highlighted the ruling as a win for states and the rule of law. Associated Press News reported that the appeals court panel refused to let Kalshi restart trading on sports and elections events in Nevada while it fights the state's effort to shut it down. The Nevada attorney general's office called the ruling a "major victory for Nevada and our longstanding authority to regulate gaming in our state." The Seattle Times and The Hamilton Spectator also noted that the court panel refused to let Kalshi restart trading on elections and sporting events. Associated Press News quoted the 9th Circuit panel stating that "sports betting does not become something else simply because a company calls it an ‘event contract.’" ### Centre - Centre-rated reports focused on the court's decision that Kalshi's prediction market contracts are sports bets, not federally regulated swaps. CBS News reported that the 9th Circuit Court of Appeals said Kalshi failed to show that the Commodity Exchange Act preempts Nevada gambling laws. The court stated that Kalshi's prediction market contracts are sports bets, not federally regulated swaps. CBS News quoted one of the judges, Ryan Nelson, who wrote, "The substance of the sports event contracts offered on Kalshi's DCM is sports gambling, regardless of whether Kalshi calls them swaps." WBAL, Ottumwa Courier, Devdiscourse, and Winnipeg Free Press also reported that the federal appeals court panel refused to let Kalshi restart trading on sports and elections events in Nevada. The Nevada Independent noted that the 9th Circuit panel disagreed "with Kalshi's overly broad reading" that the Commodity Exchange Act allows it to offer sports event contracts. ### Right No separate framing summary. **Provisional coverage gap:** right. The watch is not closed, so this is not yet a settled blindspot finding. ## Factuality profile of the covering outlets These are published factuality ratings of the outlets, not a verdict on whether this story or its claims are true. - high: 5 - unknown: 2 - veryHigh: 2 ## Verification scope This page compares coverage and scores the source reporting. It is not a ClaimReview verdict on whether the underlying event or claim is true. ## Original reporting this was written from - [CBS News](https://cbsnews.com/news/kalshi-appeals-court-nevada-gambling-ruling) — Court hands U.S. states a win in fight over who regulates prediction markets - [WBAL](https://wbal.com/federal-appeals-court-panel-gives-nevada-a-win-in-its-fight-to-regulate-prediction-market-kalshi) — Federal appeals court panel gives Nevada a win in its fight to regulat - [The Seattle Times](https://seattletimes.com/business/federal-appeals-court-panel-gives-nevada-a-win-in-its-fight-to-regulate-prediction-market-kalshi) — Federal appeals court panel gives Nevada a win in its fight to regulate prediction market Kalshi - [Associated Press News](https://apnews.com/article/nevada-kalshi-prediction-markets-gambling-polymarket-2168b6c0837ad9b4f0f63b04633d8835) — Federal appeals court panel gives Nevada a win in its fight to regulate prediction market Kalshi - [Ottumwa Courier](https://ottumwacourier.com/news/national_news/federal-appeals-court-panel-gives-nevada-a-win-in-its-fight-to-regulate-prediction-market/article_197c5449-cc8f-533d-920b-12accd0117a8.html) — Federal appeals court panel gives Nevada a win in its fight to regulate prediction market Kalshi - [Devdiscourse](https://devdiscourse.com/article/international/3969189-kalshi-cannot-block-nevada-oversight-of-sports-prediction-markets-us-appeals-court-rules) — Kalshi cannot block Nevada oversight of sports prediction markets, US appeals court rules - [The Hamilton Spectator](https://thespec.com/business/federal-appeals-court-panel-gives-nevada-a-win-in-its-fight-to-regulate-prediction-market-kalshi/article_212aa57b-b1a0-58d5-b17b-a015ca04fc49.html) — Federal appeals court panel gives Nevada a win in its fight to regulate prediction market Kalshi - [Winnipeg Free Press](https://winnipegfreepress.com/business/2026/08/28/federal-appeals-court-panel-gives-nevada-a-win-in-its-fight-to-regulate-prediction-market-kalshi) — Federal appeals court panel gives Nevada a win in its fight to regulate prediction market Kalshi - [Nevada Independent](https://thenevadaindependent.com/article/federal-appeals-court-allows-nevada-to-ban-kalshi-and-other-prediction-markets) — Federal appeals court allows Nevada to ban Kalshi and other prediction markets - The Nevada Independent ## Questions **What did the appeals court rule regarding Kalshi and Nevada?** A federal appeals court ruled that Nevada can regulate Kalshi's prediction markets. The court determined that Kalshi's contracts based on sporting events are sports bets and not federally regulated financial swaps, rejecting Kalshi's argument that federal law preempts state gambling regulations. **Why is this ruling significant for states?** The ruling is significant because it supports states' authority to regulate prediction markets under their own gambling laws. It is part of a larger legal conflict involving approximately 20 states that are litigating over who has regulatory oversight of these platforms. **Did all courts rule the same way on this issue?** No, the rulings have differed. While the 9th Circuit Court of Appeals sided with Nevada, a previous decision by the 3rd U.S. Circuit Court of Appeals found that the CFTC has exclusive control over sports-related event contracts on Kalshi, reaching a different conclusion on federal preemption. --- MediaBias News — https://mediabias.news. Reproduced from https://mediabias.news/politics/appeals-court-sides-with-nevada-in-prediction-market-regulation-fight. Please cite as: MediaBias News, "Appeals court sides with Nevada in prediction market regulation fight", https://mediabias.news/politics/appeals-court-sides-with-nevada-in-prediction-market-regulation-fight