Kalshi Loses Nevada Rehearing Bid as California Tribes Win Injunction
Published: November 7, 2026 | Author: Roxy Vance
Kalshi lost two federal court rulings on November 4, 2026: the US Court of Appeals for the Ninth Circuit refused to rehear its case against Nevada, and a federal judge in California barred it from offering sports contracts on two tribes’ lands. Together, they leave in place an August ruling that lets Nevada enforce its gaming laws against Kalshi’s sports contracts, and limit where those contracts can be offered in California.
What the Ninth Circuit Decided
In a one-page order, Circuit Judges R. Nelson, Bade and Lee denied KalshiEX’s petitions for panel rehearing and rehearing en banc in KalshiEX, LLC v. Assad. “The panel unanimously votes to DENY the petition for rehearing and petition for rehearing en banc,” the order said. It added that the full court was advised of the en banc petition and that no judge asked for a vote on it.
The denial leaves the panel’s August 28 opinion standing. The case began after the Nevada Gaming Control Board sent Kalshi a cease-and-desist letter saying it was running a sports betting platform in breach of state law. Kalshi argued that, as a designated contract market under the Commodity Exchange Act (CEA), its sports event contracts fall under the exclusive authority of the Commodity Futures Trading Commission (CFTC).
The panel disagreed. It held that the CEA likely does not override Nevada’s gaming rules for these contracts, because sports event contracts are sports bets, not “swaps” under the law. It upheld the lower court’s decision to lift the injunction that had shielded Kalshi’s sports contracts from Nevada enforcement, and sent questions about Kalshi’s election contracts back to the district court.
While the petition was pending, Kalshi pointed the court to new CFTC rules: an October 9 interim final rule excluding casino-style gambling products from the definition of “swap,” and a proposal to define “swap” to cover sports event contracts. The panel’s order does not discuss them.
The California Tribes’ Injunction
The same day, US District Judge Jacqueline Scott Corley granted a preliminary injunction sought by Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians. It bars Kalshi Inc. and KalshiEX from offering any sports contracts on the tribes’ Indian lands, including contracts on baseball, basketball, football, soccer, tennis, golf, hockey, boxing, esports and Ultimate Fighting Championship events.
Judge Corley had first refused the tribes’ request. On September 16, a Ninth Circuit panel reversed that decision in part, finding the tribes likely to show that Kalshi’s sports contracts are class III gaming under the Indian Gaming Regulatory Act (IGRA) when users enter them from tribal territory. It also held that the exclusive jurisdiction the CEA gives the CFTC does not extend to these contracts.
What It Means for Players
The California order is limited to the two tribes’ lands, not the whole state. The tribes must give Kalshi maps of their land boundaries by November 13, and Kalshi must report within 21 days on how it is complying.
In Nevada, the ruling that lifted the injunction protecting Kalshi’s sports contracts from state enforcement now stands. Kalshi had told the court it “now stands exposed to civil and criminal liability, even though it is abiding by federal law,” as reported by CDC Gaming.
What Happens Next
Kalshi now has 90 days to ask the US Supreme Court to review the Nevada decision, according to CDC Gaming. The court already has two related petitions. Robinhood Derivatives asked it in September to review the Ninth Circuit’s August 28 decision in its own Nevada case (No. 26-338). New Jersey gaming officials have asked the justices to review an April 6 Third Circuit decision in Kalshi’s case against them (No. 26-299); Kalshi’s response is due December 7. The American Gaming Association, the National Football League and 145 tribes are among those that have filed briefs in that case.
Arkansas also sued Kalshi on November 5. Meanwhile, DraftKings cut its profit forecast to fund its own prediction markets business, Predictions. Our sports betting guide covers sportsbooks licensed by the states.
