Securities Regulation Daily Wrap Up, FEDERAL PREEMPTION—9th Cir.: Ninth Circuit closes the door on rehearing of Kalshi prediction markets ruling, (Nov 5, 2026)
Law Firms Mentioned:Milbank, LLP | Redwood Public Law, LLP
Organizations Mentioned:KalshiEX, LLC | Nevada Gaming Control Board
The denial starts a clock for Kalshi to file a petition for Supreme Court review.
A Ninth Circuit panel unanimously denied a request by the Kalshi exchange to rehear an August 28 decision allowing Nevada gaming authorities to pursue enforcement over alleged illegal gambling relating to Kalshi’s prediction markets. The panel also denied Kalshi’s petition for en banc rehearing (KalshiEx, LLC v. Assad, No. 25-7516 (9th Cir. Nov. 4, 2026)).
According to the three-judge panel, the full court was advised of the petition for rehearing and no judge requested a vote on whether to rehear the matter en banc.
Kalshi was challenging the panel’s decision that held that Nevada’s laws were not preempted by the federal Commodity Exchange Act as to Kalshi’s sports-related event contracts. Nevada alleges that the contracts are illegal sports betting under state law, while Kalshi argues that the CFTC has exclusive jurisdiction over the contracts.
In the August 28 decision, the panel upheld a November 2025 ruling by a Nevada federal district court that allowed Nevada to proceed with a cease-and-desist action attempting to block Kalshi from offering sports-related event contracts. The district court had earlier granted Kalshi a preliminary injunction against the Nevada order, but later reversed itself and dissolved the injunction.
Countdown to Supreme Court. Kalshi has 90 days from the denial of rehearing to file a petition for certiorari to the Supreme Court.
Two other prediction market exchanges have filed challenges to the Ninth Circuit’s August 28 decision. Robinhood Derivatives, LLC and North American Derivatives Exchange, Inc. d/b/a Crypto.com both filed for certiorari in September to challenge the panel’s ruling on their consolidated appeals.
From the opposite side, the state of New Jersey has filed a cert petition challenging a Third Circuit decision in favor of Kalshi.
The case is No. 25-7516.
Judge: Per curiam.
Attorneys: Natasha Khan (Milbank, LLP) for KalshiEX, LLC. Abigail L. Pace, Nevada Office of the Attorney General, for George Assad and Chandeni K. Sendall. Devin Antuan Oliver (Redwood Public Law, LLP) for Nevada Gaming Control Board.
Companies: KalshiEX, LLC; Nevada Gaming Control Board
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