9th Circuit sides with states in Kalshi gambling fight, potentially reviving Arizona’s prosecution

By: Jim Small

Outlets: Arizona Mirror

Published: August 28, 2026

Words: 804

Last Updated: 2 weeks, 5 days ago

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A federal judge’s order blocking Arizona from prosecuting online prediction market company Kalshi for violating the state’s gambling laws is living on borrowed time after the 9th U.S. Circuit Court of Appeals ruled that gambling on sporting events is not protected by the federal law that otherwise allows prediction market firms to operate.

The ruling, which came in a similar but separate Nevada case, directly undercuts the rationale used by …

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