The U.S. Ninth Circuit Court of Appeals ruled on August 28, local time, that prediction contracts on sports events offered by prediction market company Kalshi are essentially sports betting, not swap instruments regulated under federal commodity law. This ruling rejects Kalshi's broad interpretation of federal commodity law, meaning that Nevada gaming regulators can continue to treat such products as unlicensed sports betting operators. The court upheld the lower court's decision to lift the injunction, which had previously prevented Nevada regulators from enforcing the law. This ruling creates a circuit split, potentially prompting Supreme Court intervention to decisively impact the regulatory landscape of the rapidly expanding prediction market industry in the United States. The court also remanded matters related to Kalshi's election contracts back to the lower court for reconsideration.