Appeals Court Backs Nevada Oversight of Kalshi Betting Markets

The decision in San Francisco creates a direct legal conflict with the 3rd U.S. Circuit Court of Appeals, which previously ruled that New Jersey lacked the authority to regulate the same platform. By affirming Nevada’s right to enforce its gaming regulations on these specific event contracts, the court has deepened the regulatory uncertainty surrounding prediction markets.

This split between appellate circuits intensifies pressure on the Supreme Court to clarify the jurisdictional boundaries between state gaming boards and the U.S. Commodity Futures Trading Commission. As the industry expands, the question of whether federal oversight under the Commodity Exchange Act supersedes local authority remains a central point of contention for market participants and regulators alike.