Ninth Circuit rules Kalshi sports bets illegal on tribal land
The court says Kalshi’s own adverts call it sports betting, even as its lawyers call it derivatives, according to the opinion.
The hit
A Ninth Circuit panel ruled that Kalshi’s sports event contracts count as illegal class III gaming when accessed on tribal land, partly reversing a lower court’s refusal to block them, according to the court’s opinion. The panel affirmed the dismissal of the tribes’ false-advertising claim against Kalshi.
Why it matters
The ruling threatens Kalshi’s push to sell sports-style contracts nationwide by treating them as gambling, not commodities, wherever tribal casinos operate. It hands tribes fresh leverage in a wider legal fight against prediction markets, backed by state attorneys-general & gaming groups.
The record
| Ruling date | 16 September 2026 (Ninth Circuit) |
|---|---|
| Case | Blue Lake Rancheria v. Kalshi, Inc., No. 25-7504 |
| Sports share of volume | Up to 90% of Kalshi’s trading volume (Ninth Circuit) |
| Related precedent | KalshiEX v. Assad, 9th Cir., 28 August 2026 – contracts ‘likely not swaps’ |
| Amicus support | 27 state attorneys-general plus DC, led by Massachusetts & California |
What happens next
Watch for Kalshi’s response & any bid for full-court or Supreme Court review, plus whether an injunction issues on remand while the case continues.
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