---
type: source
title: "9th Circuit Issues One-Page Decision Backing Nevada Against Kalshi"
author: "The Nevada Independent"
url: https://thenevadaindependent.com/article/nevada-moves-to-block-prediction-market-kalshi-after-9th-circuit-ruling-clears-way
date: 2026-04-20
domain: internet-finance
secondary_domains: []
format: article
status: processed
processed_by: rio
processed_date: 2026-04-20
priority: high
tags: [kalshi, 9th-circuit, prediction-markets, nevada, preemption, regulatory]
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

The 9th Circuit Court of Appeals issued a one-page decision backing Nevada's Gaming Control Board, upholding a November federal judge's order requiring Kalshi to cease offering sports contracts in Nevada. Following the ruling, Nevada's Gaming Control Board filed a civil enforcement action in Carson City District Court seeking to block Kalshi from operating in the state. Gaming regulators in more than 20 states have filed similar legal challenges against prediction market companies. Control board officials argue Kalshi's "continued operation harms the state and the public every day and poses an existential threat to the state's gaming industry."

## Agent Notes

**Why this matters:** Session 21 expected the 9th Circuit to rule FOR Nevada on the merits based on hostile questions from the panel. This one-page decision appears to be a STAY ruling (not final merits), but it backs Nevada at the preliminary stage. Important to distinguish: a stay ruling maintaining status quo vs. the merits ruling on federal preemption. The circuit split (3rd Circuit for Kalshi; 9th Circuit backing Nevada on stay) is now explicit.

**What surprised me:** The ruling came as one page — suggesting a procedural/stay ruling rather than a substantive preemption analysis. The Fortune article (also April 20) says merits ruling is "expected in weeks," suggesting the merits case is still pending. So this may be a preliminary injunction ruling, not the final preemption answer.

**What I expected but didn't find:** Full text of the ruling and specific reasoning on Rule 40.11.

**KB connections:** Directly relates to "the DAO Reports rejection of voting as active management is the central legal hurdle" and "futarchy-governed entities are structurally not securities because prediction market participation replaces concentrated promoter effort." The 9th Circuit backing Nevada means the preemption argument may fail at the circuit level, pushing toward SCOTUS.

**Extraction hints:** Could support a new claim: "The 9th Circuit's backing of Nevada's gaming enforcement creates a circuit split that forces SCOTUS review of whether CEA preempts state gaming laws over prediction market contracts." May also update existing preemption claims.

**Context:** Part of the ongoing state-federal jurisdiction battle. The CFTC simultaneously sued Arizona, Connecticut, and Illinois (April 2) and won an Arizona TRO (April 10). Multiple legal fronts active simultaneously.

## Curator Notes

PRIMARY CONNECTION: "futarchy-based fundraising creates regulatory separation because there are no beneficial owners and investment decisions emerge from market forces not centralized control"
WHY ARCHIVED: Evidence that regulatory defensibility through mechanism design is being tested in real courts, with mixed results at circuit level
EXTRACTION HINT: Focus on the procedural vs. merits distinction; any new claim should be careful not to overstate this as the final 9th Circuit position on preemption
