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The U.S. Court of Appeals for the Ninth Circuit has denied Kalshi’s request for a rehearing, leaving in place a ruling that affirmed the dissolution of its temporary injunction against Nevada, according to Sports Betting Dime.
The decision leaves the prediction-market company exposed to state gambling-law enforcement within the Ninth Circuit.
Ninth Circuit rejects panel and en banc rehearing
Kalshi sought an en banc rehearing in September after the appeals court ruled against it in August. The August decision upheld a lower court’s dissolution of the injunction that had protected Kalshi from Nevada enforcement.
The three-judge panel unanimously denied the rehearing request. Its order also said “no judge has requested a vote on whether to rehear the matter en banc,” rejecting both panel rehearing and rehearing by the broader court.
Sports Betting Dime reported that states within the Ninth Circuit can choose to enforce their gambling laws against Kalshi. The circuit covers Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington.
Supreme Court review is the next available step
The Ninth Circuit outcome contrasts with a Third Circuit ruling favoring Kalshi, which prohibited New Jersey from enforcing its gambling laws against the company’s sports event contracts.
New Jersey and Attorney General Jennifer Davenport have filed a petition asking the U.S. Supreme Court to review whether states can regulate sports event contracts under their gambling laws. Robinhood also sought Supreme Court review after the adverse appeals-court ruling, according to Sports Betting Dime.
Kalshi has 90 days to seek U.S. Supreme Court review of the Ninth Circuit decision.
More from playwv.com – 39 states and DC urge Supreme Court to hear Kalshi gambling preemption case – Kalshi Faces Contempt Motion as Nevada Alleges Geofencing Failures – Kalshi Bans Highlight Prediction Market Compliance Risks
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Source: As reported by Sports Betting Dime.
