9th Circuit sides with states in Kalshi gambling fight, potentially reviving Arizona's prosecution
9th Circuit rules sports betting not federally protected, allowing Arizona to resume prosecution of Kalshi.Summary
The 9th U.S. Circuit Court of Appeals held that gambling on sporting events does not qualify as a “swap” under the Commodity Exchange Act, thereby removing federal protection for such bets. This decision, issued in a Nevada case, directly contradicts a prior ruling by Judge Michael Liburdi in Arizona, who had enjoined the state from prosecuting Kalshi for alleged violations of Arizona’s gambling laws. The appellate panel, composed of three judges appointed by President Donald Trump, emphasized that Congress did not intend to overturn decades of state and tribal gambling regulation.
Arizona Attorney General Kris Mayes welcomed the ruling as a victory for state authority, noting that it clears the way to lift the injunction and revive the state’s 20‑count criminal case against Kalshi. The decision also creates a circuit split with the 3rd Circuit, which previously sided with Kalshi, setting the stage for a potential Supreme Court review. The judges invoked the major questions doctrine, arguing that granting the Commodity Futures Trading Commission authority over sports betting would require clear congressional authorization.
(Source：Google News)