Ninth Circuit Rejects Kalshi Rehearing, Opening Next Route to Supreme Court
Kalshi is not going to get one other listening to within the Ninth Circuit Court of Appeals over its effort to block Nevada playing regulators.
The appeals courtroom on Wednesday denied the change’s requests for panel rehearing and rehearing en banc, leaving intact an Aug. 28 decision upholding the dissolution of an injunction that had protected Kalshi from Nevada enforcement.
“The full courtroom has been suggested of the petition for rehearing en banc and no decide has requested a vote on whether or not to rehear the matter en banc,” the order states. The unique three-judge panel unanimously rejected the rehearing petitions.
The denial strikes Kalshi nearer to a attainable Supreme Court petition. It doesn’t imply the justices will hear the case, and it doesn’t flip the sooner preliminary injunction ruling right into a remaining judgment resolving the underlying lawsuit.
Nevada ruling stays in place
The Ninth Circuit’s August determination discovered that Kalshi had not established that the Commodity Exchange Act probably prevents Nevada from making use of its gaming legal guidelines to the change’s sports activities occasion contracts. It affirmed the dissolution of preliminary safety in opposition to state enforcement.
Kalshi argues that its contracts fall underneath the Commodity Futures Trading Commission’s (CFTC) unique jurisdiction. Nevada maintains that federal registration doesn’t exempt the merchandise from state playing necessities.
Wednesday’s order doesn’t present a brand new substantive evaluation of that dispute. It declines to reopen the panel determination.
That distinction additionally limits the geographic implications. The August opinion is precedent for federal courts inside the Ninth Circuit, which incorporates California and eight different states. But denying rehearing doesn’t mechanically impose a brand new platform ban throughout all 9 states or determine each state’s particular person enforcement case.
Supreme Court clock begins
Kalshi typically has 90 days from the rehearing denial to petition the Supreme Court, inserting the deadline at February 2, 2027, except an extension is granted. It may file sooner.
Gaming lawyer Daniel Wallach highlighted the denial Wednesday, noting that no decide requested an en banc vote and that Kalshi may search to coordinate its Supreme Court timing with the pending New Jersey dispute.
🚨 BREAKING: The Ninth Circuit has denied Kalshi’s petition for panel rehearing and rehearing en banc. No decide requested a vote on en banc overview.
Kalshi now has 90 days to search SCOTUS overview, however Paul Clement could strive to align the timing with the pending Third Circuit case. pic.twitter.com/4gqVkVsdQG
— Daniel Wallach (@WALLACHLEGAL) November 4, 2026
New Jersey is already asking the justices to overview the Third Circuit’s pro-Kalshi ruling. The conflicting appellate outcomes present the backdrop for requests that the Supreme Court settle the federal-versus-state jurisdictional query.
Another setback after the Second Circuit order
The Ninth Circuit denial follows a separate setback Tuesday within the Second Circuit.
That courtroom declined to grant injunctions pending attraction in Kalshi’s New York and Connecticut circumstances and Coinbase’s Connecticut case. Those appeals stay pending, and the temporary order didn’t resolve the underlying preemption query.
The two developments shouldn’t be conflated. The Second Circuit refused interim safety whereas appeals proceed. The Ninth Circuit refused to rethink an appellate determination already issued in opposition to Kalshi.
Together, they depart the corporate with out the extra judicial safety it sought in a number of enforcement fights. The subsequent potential step in Nevada is a petition to the Supreme Court, not a assured listening to or an computerized keep of state motion.
