A Ninth Circuit panel examined Kalshi’s sports-event contracts during a Friday hearing, challenging the prediction market operator’s legal separation from traditional wagering. California tribes are using the proceedings to push for a renewed injunction against the platform’s operations.
Judges focused on the structural similarities between Kalshi’s offerings and conventional sports bets. The panel asked company representatives to clarify why federal regulations should apply differently to prediction market contracts than to standard gambling instruments. Legal arguments centered on jurisdictional boundaries and the classification of event-based financial agreements.
Tribal Injunction Bid Under Review
The hearing coincides with ongoing efforts by California tribal nations to restore a previously blocked injunction. Tribal representatives argue that Kalshi’s sports contracts compete directly with regulated gaming activities reserved for tribal jurisdictions. The court’s questioning highlights the need for a clear statutory distinction before the appeal proceeds.