Kalshi seeks en banc rehearing after Ninth Circuit lets Nevada regulate it as gambling
Kalshi asked the full Ninth Circuit on Wednesday to rehear its dispute with Nevada regulators, arguing a three-judge panel miscast its sports event contracts as gambling. The petition for en banc rehearing follows an appellate loss that let Nevada apply state gaming laws to federally regulated event contracts.
The dual petitions raise the stakes for whether state gambling commissions can override CFTC registration. Kalshi must now fight on two tracks: rehearing before eleven Ninth Circuit judges, while Robinhood and New Jersey push the Supreme Court to resolve the split. Every month of procedural delay risks another state filing.
Nevada already stripped Kalshi's federal shield, and Utah and Iowa have followed. Geofence costs multiply while legal spend compounds across cases that cannot resolve until the circuit split ends. Traders hold positions whose legality shifts with state borders. A rare Supreme Court grant is the only path to uniform rules before Kalshi's national sports market fragments entirely.