LATEST: 🇺🇸 The Ninth Circuit appeals court ruled sports-related event contracts from Kalshi, Crypto.​com and Robinhood aren't "swaps," rejecting their bid to block Nevada's gaming regulator from halting operations.

What happened

The Ninth Circuit appeals court ruled that sports-related event contracts from Kalshi, Crypto.com, and Robinhood are not "swaps," and rejected their bid to block Nevada's gaming regulator from halting their operations.

Confirmed

Global impact / market context

This ruling means these companies may have to stop offering sports event contracts in Nevada, which could reduce their revenue from those products. It also clarifies that such contracts are not swaps, which are financial derivatives, so they may face different state gaming rules instead of federal commodity regulations.

Analyst inference

Event contracts, which let people bet on outcomes like sports games, are a growing area for trading platforms. This court decision could affect how other states regulate these products, potentially increasing compliance costs for companies and limiting investor access to such contracts in certain regions.

Analyst inference

What to watch

1. Watch whether Kalshi, Crypto.com, and Robinhood appeal this ruling to the Supreme Court, as the Ninth Circuit's decision is now binding in its jurisdiction unless higher courts intervene. Confirmed
2. Investors should monitor if these companies pause or adjust their sports event contract offerings in Nevada, which could reduce trading volumes and affect their earnings from this product line. Proposed
3. Other states may follow Nevada's lead in regulating event contracts as gaming, not swaps, which could lead to more state-level restrictions and higher compliance costs for platforms nationwide. Analyst inference

Evidence

• x.com