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Ninth Circuit rules against Kalshi in sports betting case31 August 2026(PRESS RELEASE) -- Dominick Freda, Legal Director of Better Markets, issued the following statement regarding the decision in KalshiEX LLC v. Assad, No. 25-7516 (9th Cir.), rejecting Kalshi’s attempts to circumvent state gaming laws by calling its wagers “swaps”: “Today, the Ninth Circuit recognized what we have been arguing for years now: ‘placing sports bets, even when called by another name, is still gambling’ and ‘everyone, including Kalshi, knows it when they see it.’ Consistent with what we told the Court in our amicus brief, the Court thus saw right through Kalshi’s attempt to dress up its sports wagers as derivatives subject to CFTC jurisdiction. “This common-sense ruling is a decisive win for the rule of law and for every state that has built a regulatory regime to protect its residents from gambling harms. The Court’s decision also puts to rest the idea that a sportsbook can bootstrap itself into immunity by simply registering with the CFTC as a designated contract market and declaring its own products lawful. Self-certification is not a license to ignore federal law barring gaming contracts, nor is it a way to ignore state gambling regulations. “Moreover, the Court rightly rejected the CFTC’s about-face on this issue. Two years ago, the agency told the public that it ‘is not a gaming regulator’ and has neither ‘the statutory mandate nor specialized experience appropriate’ to be one. The Court wasn’t fooled by the CFTC’s unprincipled change in position, recognizing that the CFTC was right two years ago, and wrong now. “This decision is just one of many expected to be issued by courts presiding over states’ attempts to enforce their gaming laws against Kalshi and other so-called prediction markets. Better Markets has supported state efforts to protect consumers from unregulated gambling from the get-go, and we will continue to do so.”
Ninth Circuit rules against Kalshi in sports betting case
is republished from iGamingNews.com.
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