Kalshi seeks en banc rehearing after Ninth Circuit loss to Nevada regulators
Kalshi requested an en banc rehearing from the Ninth Circuit on Wednesday, seeking review by 11 judges rather than appealing the decision. The filing argues the court miscast its sports event contracts. The move follows an appellate loss in Nevada's ongoing effort to enforce state gaming laws against Kalshi's sports offerings. Kalshi announced the filing on September 9. The request keeps the dispute within the Ninth Circuit rather than escalating to the Supreme Court.
Kalshi is buying time inside the Ninth Circuit instead of joining New Jersey's Supreme Court petition. An en banc grant would erase the three-judge panel's ruling and reset Nevada's federal shield question. A denial leaves Kalshi with only the high court. Either path stretches across months while Connecticut and Baltimore suits advance.
Every month of delay risks another state filing, and each new state loss emboldens the next attorney general. Traders hold positions whose legality shifts with geography now, not regulation. Legal spend compounds across parallel cases that cannot resolve until the circuit split ends. Kalshi's board already called the Ninth Circuit opinion 'more confusion than clarity.'
This is Kalshi's second formal response to a Ninth Circuit loss in less than two weeks, after New Jersey and Connecticut launched parallel challenges and the appeals court first rejected its bid to block Nevada gaming oversight.