Ninth Circuit weighs tribal challenge to Kalshi sports contracts as Washington sues
Kalshi's sports event contracts face a tribal challenge in Blue Lake Rancheria v. Kalshi, now before the Ninth Circuit. Both Kalshi and Robinhood filed answer briefs. A panel of judges heard oral argument on the matter. The core legal question is whether CFTC registration preempts state and tribal gaming law. Separately, Washington state also barred Kalshi's sports contracts under its gambling laws, according to state filings.
Kalshi cannot assume CFTC registration alone keeps states out anymore. Nevada and Washington are now enforcing gambling laws against its sports contracts directly, forcing Kalshi to fight market by market rather than win once federally. Robinhood shares the identical exposure, since both platforms were named in the underlying appeal.
Each new state victory invites copycat actions, multiplying legal budgets and forcing geofencing decisions. The Ninth Circuit ruling will set the appellate template for whether CFTC-licensed event contracts can survive state gambling enforcement. A loss there accelerates the patchwork both platforms must navigate. For Kalshi specifically, the Nevada and Washington fights compound an already crowded docket.