Kalshi faces US court setbacks over prediction market gambling

The US Ninth Circuit Court of Appeals heard arguments from three California tribes seeking to block Kalshi's sports‑event contracts on tribal lands. Judges questioned why Kalshi, regulated by the Commodity Futures Trading Commission, should be treated differently from conventional sportsbooks and warned that offering the contracts could violate federal Indian gaming law and the Lanham Act's false‑advertising provisions.

Separately, a US District Court in New York denied Kalshi's request for a preliminary injunction, allowing the state to enforce its gambling laws against the prediction‑market platform. Governor Kathy Hochul and Attorney General Letitia James praised the decision, noting that Kalshi can continue operating pending appeal but faces uncertain future in the state and a potential precedent for other jurisdictions.