Court rules Kalshi sports bets aren't swaps, just gambling with a different name
Summary
A federal appeals court in the 9th Circuit ruled that Kalshi’s sports bets are gambling contracts, not swaps under the Commodity Exchange Act, and that Nevada state gaming laws apply. The decision creates a circuit split on whether prediction-market bets fall under swap definitions and could push the issue toward the Supreme Court. The ruling also notes that proposed CFTC changes could affect the regulatory landscape for prediction markets like Kalshi.