Ninth Circuit rules Padres partner offers illegal gambling in event contracts case
The Ninth Circuit ruled Wednesday that a San Diego Padres partner offers illegal gambling through event contracts, according to a decision authored by Judge Ryan D. Nelson. The opinion cited Kalshi's own advertising language in its analysis. The ruling addresses the legal status of event contracts tied to sports partnerships and carries implications for how prediction market platforms structure similar arrangements with professional sports teams.
Creates judicial precedent that event contracts in sports partnerships may constitute illegal gambling under federal law, exposing prediction market platforms to similar challenges when they team with leagues or franchises.
Third Ninth Circuit ruling this week to reject Kalshi's federal preemption theory for sports event contracts, after parallel losses in Nevada and California tribal lands, with Robinhood and Crypto.com now also petitioning the Supreme Court for a uniform national rule.