Kalshi Loses Again at Ninth Circuit as CA Tribes Win

The Ninth Circuit handed Kalshi its second consecutive appellate loss this week, ruling in favor of California tribal nations — including the Blue Lake Rancheria and Chicken Ranch tribes — in their challenge to Kalshi's bid to offer sports event contracts under federal CFTC regulation.

Why It Matters

Kalshi's core argument — that federal oversight of prediction markets preempts state gambling law, allowing it to operate nationwide without state licenses — has now failed twice at the Ninth Circuit, according to Legal Sports Report. For tribal operators, who hold exclusive gaming compacts in California, the ruling reinforces that states and tribes retain meaningful authority to block federally registered prediction markets from encroaching on their territory. For bettors and the broader iGaming industry, the decision signals that Kalshi's path to offering sports contracts in major U.S. markets remains legally contested rather than settled. Gambling always carries financial risk, and regulatory uncertainty compounds that for platforms operating in gray zones.