The Ninth Circuit has turned away an effort to move a closely followed Kalshi appeal onto the same judicial track as a separate Nevada dispute involving sports event contracts.
In a short order issued May 6, the appeals court denied a request to reassign the case brought by Blue Lake Rancheria and other tribal plaintiffs against Kalshi Inc. and related defendants. The appeal is pending before the U.S. Court of Appeals for the Ninth Circuit under case number 25-7504 after originating in federal court in San Francisco.
The court said the request failed because the California dispute differed substantially from another case already argued before a separate Ninth Circuit panel involving North American Derivatives Exchange and Nevada regulators.
“Due to significant differences between this appeal and North American Derivatives Exchange, Inc. v. State of Nevada, No. 25-7187, the motion to reassign this appeal to the panel that heard argument in that appeal (Dkt. No. 62) is DENIED,” the order states.
The one-page filing was signed for the court by Ninth Circuit Clerk of Court Molly C. Dwyer. Judges currently assigned to the Blue Lake Rancheria appeal were not identified in the order, and the court did not explain what legal distinctions drove the denial.
The California litigation has become part of a fight over whether federally regulated prediction markets can offer contracts tied to sporting events without violating state gambling laws or tribal gaming agreements.
California tribes previously sued Kalshi and Robinhood, arguing the companies were effectively offering unauthorized sports betting products in the state through event contracts tied to athletic outcomes. The tribes suggest the markets threatened the exclusivity rights tribes hold under California’s gaming framework.
Kalshi and Robinhood pushed back against the lawsuit by arguing the contracts fall under federal commodities regulation overseen by the Commodity Futures Trading Commission rather than state gambling enforcement. Court filings from the companies also argued that federal law preempts the tribes’ claims.
Earlier reporting on the case showed a federal judge sided with Kalshi on key procedural issues tied to the California dispute, allowing parts of the company’s arguments to move forward while the challenge continues through the courts. It drew attention because similar legal theories are emerging in multiple states where regulators and tribal gaming groups are questioning prediction market offerings linked to sports events.
The Nevada case referenced by the Ninth Circuit order centers on separate legal and regulatory questions involving sports event contracts and state enforcement efforts there. Even so, parties seeking reassignment had argued the overlap justified placing both matters before the same appellate panel.
The Blue Lake Rancheria appeal remains active, and the Ninth Circuit has not yet released additional scheduling details or hearing dates.
Featured image: Kalshi / Canva
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