Nevada fines Kalshi $120,000 a day as contempt threat follows court loss

A three-judge panel of the Ninth Circuit ruled unanimously that Nevada may require Kalshi to hold a state gaming licence before offering contracts tied to sporting events, rejecting the company's argument that federal commodity law shields it from state oversight. Judge Ryan Nelson, writing for the court, said the contracts carried the defining characteristics of sports bets and called Kalshi's attempt to distinguish its products from conventional sportsbook wagering "unpersuasive" and, on one point, "disingenuous" — the company had marketed itself as "the first app for legal sports betting" nationwide.

The ruling leaves Kalshi exposed to a $120,000 daily penalty that Nevada regulators had already sought to impose. The Gaming Control Board is separately pursuing a contempt finding. Chairman Mike Dreitzer said the decision vindicated the Board's position that the contracts were sports gambling requiring state licensure. Governor Joe Lombardo said operators in this category must comply with Nevada's regulatory framework.

The decision sits in direct conflict with an April ruling by the Third Circuit, which held that New Jersey could not apply its gaming laws to Kalshi's platform. Columbia Law School professor Joshua Mitts told CNBC the disagreement constituted a classic circuit split of the kind that draws Supreme Court review.