Ninth Circuit rejects Robinhood, Kalshi, and Crypto.com bid to block Nevada gaming enforcement
The Ninth Circuit on Friday denied Robinhood Markets, Kalshi, and Crypto.com's requests for injunctive relief against the Nevada Gaming Control Board. The ruling blocks the platforms' bid to stop state gambling enforcement actions against them. An Ingame.com report said the decision's reasoning directly contradicted the Third Circuit's prior ruling on the underlying legal questions, setting up a potential Supreme Court battle over federal preemption.
The joint loss means three major platforms now face active Nevada enforcement without appellate protection at the same time. Kalshi bears the heaviest load; it already fights state actions in Connecticut, Michigan, Washington, New York, Wisconsin, and Utah. Each new defeat erodes the preemption shield that once justified its national launch, forcing expensive geofencing or parallel litigation in every hostile state.
Robinhood and Crypto.com gain exposure they avoided until now; the shared ruling signals that no CFTC-registered platform can rely on federal registration alone. Polymarket and Novig face identical risk, but Kalshi's higher profile keeps it the first target. Traders hold contracts whose validity shifts with state borders, not federal designation. Legal spend compounds across dockets while the national sports market fragments geography by geography.