Is Kalshi legal?

Kalshi at the Supreme Court: Petitions and Dates

By Owen Monagan ·

The U.S. Supreme Court has not agreed to hear a Kalshi case. As of September 2026, three petitions ask it to decide whether federal commodities law stops states applying their gambling laws to sports contracts on exchanges like Kalshi: one from New Jersey, which lost to Kalshi in the Third Circuit, and two from Robinhood and Crypto.com, which lost to Nevada in the Ninth. Kalshi itself didn't petition.

The question · as of Sep 22, 2026

Who gets to regulate sports contracts on a federally registered exchange: only the federal regulator, or the states too? The Court is being asked whether federal commodities law preempts state gambling laws, not whether anyone must stop, and not how the trades are taxed.

Is the Supreme Court hearing the Kalshi case?

  1. No. 26-299 · filed

    Flaherty v. KalshiEX: New Jersey (state gaming regulators)

    From the Third Circuit, No. 25-1922, which ruled for Kalshi on Apr 6, 2026.

    “Whether the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act preempted States from regulating sports bets that occur within their jurisdictions if those bets are offered on markets registered with the Commodity Futures Trading Commission.”

    Primary source: New Jersey Attorney General, Sep 2, 2026 · p. i Kalshi's response is due Nov 9, 2026, extended at Kalshi's request from Oct 8. Primary source

  2. No. 26-338 · filed

    Robinhood Derivatives v. Dreitzer: Robinhood (a broker offering Kalshi's contracts)

    From the Ninth Circuit, No. 25-7831, which ruled for Nevada on Aug 28, 2026.

    “The question presented is whether the Commodity Exchange Act preempts the application of state gaming laws to sports-related event contracts traded on federally regulated contract markets.”

    Primary source: Robinhood Derivatives, Sep 10, 2026 · p. i Nevada's response is due Oct 14, 2026. Primary source

  3. No. 26-344 · filed

    North American Derivatives Exchange v. Nevada: Crypto.com (another exchange)

    From the Ninth Circuit, No. 25-7187, which ruled for Nevada on Aug 28, 2026.

    “The question presented is whether the CEA preempts state regulation of sports-event contracts traded on a DCM.”

    Primary source: Crypto.com (North American Derivatives Exchange), Sep 11, 2026 · p. i Nevada's response is due Oct 15, 2026. Primary source

Kalshi didn't petition the Supreme Court over its Nevada loss. It asked the full Ninth Circuit to rehear the case instead (Sep 9), which keeps that fight in the Ninth Circuit for now. Secondary source

Why the Third and Ninth Circuits split on Kalshi

  • Ruled for Kalshi
  • Ruled for the state
  • Pending
  • No appeal yet
Map of the United States coloured by how each state's federal circuit has ruled on Kalshi
  • Third CircuitRuled for Kalshi: it is likely to succeed in showing that federal law preempts New Jersey's ban on its sports contracts. (Apr 6, 2026) Primary source: pp.15–16
  • Ninth CircuitRuled for Nevada: sports contracts likely aren't swaps, so states can enforce. Kalshi has asked for a rehearing by the full court. (Aug 28, 2026) Primary source
  • Fourth CircuitHeard Maryland's case May 7, 2026. No decision yet. Secondary source
  • Sixth CircuitHeard the Ohio and Tennessee cases together on Jul 30, 2026. No decision yet. Secondary source
  • Tenth CircuitRefused to pause Utah's win while Kalshi appeals, in early September. The appeal itself is pending. Secondary source
  • Second CircuitKalshi has appealed a Connecticut federal ruling against it. Secondary source

The circuits split over one word: whether a sports contract is a "swap" under commodities law. The Third Circuit said yes, so only the federal regulator can police it. The Ninth said no, so states can. "Swap" is also a word in the tax code's exclusion from section 1256 treatment, so the Court's answer could matter to the tax argument indirectly. It would be a ruling about regulation, not about how your trades are taxed. Primary source: p. i

What a Supreme Court ruling would mean in your state

  • If the Court says federal law preempts state gambling law:

    States couldn't enforce their gambling laws against sports contracts on federally registered exchanges. The Washington, Nevada and Michigan orders all rejected Kalshi's preemption defence, so they would likely be undone, and the federal regulator would be the only one.

  • If the Court says it doesn't:

    Each state decides for itself. The current orders stand, and the license-or-stop approach can spread state by state.

When will the Supreme Court decide on Kalshi?

  1. Nevada's response to Robinhood's petition is due. Primary source

  2. Nevada's response to Crypto.com's petition is due. Primary source

  3. Kalshi's response to New Jersey's petition is due. After briefing, the justices decide whether to take any of the three. Primary source

How long does the Supreme Court take to decide whether to hear it?

Taking a case is up to the Court. Under its Rule 10, review "is not a matter of right, but of judicial discretion," and a petition "will be granted only for compelling reasons."

The timing is set by the Rules too. A brief in opposition is due 30 days after a case is docketed, unless the time is extended (Rule 15.3), which is where the October 14 and October 15 dates come from; Kalshi's was extended to November 9. The Clerk then sends the papers to the justices no less than 14 days after that brief is filed (Rule 15.5), so none of the three can reach the justices before late October 2026. If the Court denies all three, the circuit rulings stand as they are.

What did Kalshi do instead of going to the Supreme Court?

Kalshi won in the Third Circuit, so in the New Jersey case it is the respondent: the state is asking the Court to step in, and Kalshi's response is due November 9, 2026, after Kalshi asked for more time (docket).

It lost its own Nevada case in the Ninth Circuit on August 28, 2026. Rather than petition the Supreme Court, it asked the full Ninth Circuit to rehear it on September 9, which keeps that fight in the Ninth Circuit for now. Robinhood and Crypto.com, which lost there the same day, went to the Supreme Court instead. The Court's answer to their petitions would settle the question Kalshi's case turns on.

Is the Supreme Court deciding whether Kalshi is gambling, or how it's taxed?

Neither, directly. The question is who gets to regulate sports contracts on a federally registered exchange: only the federal regulator, or the states too. The circuits split over whether those contracts are "swaps", and that word also appears in the tax code's exclusion from section 1256 treatment, so the answer could matter to the tax argument indirectly. It would still be a ruling about regulation, not about how your trades are taxed.

Is Kalshi gambling? sets out both appeals court rulings, and are prediction markets taxed as gambling? covers the tax side. For where Kalshi stands in each state today, see is Kalshi legal in my state?

Sources for Kalshi at the Supreme Court

  1. Primary source Supreme Court docket, No. 26-299, Supreme Court of the United States, No. 26-299. Cited 2×, checked Sep 23, 2026.
  2. Primary source Supreme Court docket, No. 26-338, Supreme Court of the United States, No. 26-338. Cited 2×, checked Sep 23, 2026.
  3. Primary source Supreme Court docket, No. 26-344, Supreme Court of the United States, No. 26-344. Cited 2×, checked Sep 23, 2026.
  4. Primary source KalshiEX v. Flaherty, precedential opinion, U.S. Court of Appeals for the Third Circuit, No. 25-1922, Apr 6, 2026. Our copy. Cited 1×, checked Sep 23, 2026.
  5. Primary source KalshiEX v. Assad, Ninth Circuit opinion, U.S. Court of Appeals for the Ninth Circuit, No. 25-7516, Aug 28, 2026. Our copy. Cited 1×, checked Sep 23, 2026.
  6. Primary source Flaherty v. KalshiEX, petition for a writ of certiorari, New Jersey Attorney General, No. 26-299, Sep 2, 2026. Our copy. Cited 1×, checked Sep 23, 2026.
  7. Primary source Robinhood Derivatives v. Dreitzer, petition for a writ of certiorari, Robinhood Derivatives, No. 26-338, Sep 10, 2026. Our copy. Cited 1×, checked Sep 23, 2026.
  8. Primary source North American Derivatives Exchange (Crypto.com) v. Nevada, petition for a writ of certiorari, Crypto.com (North American Derivatives Exchange), No. 26-344, Sep 11, 2026. Our copy. Cited 2×, checked Sep 23, 2026.
  9. Secondary source DeFi Rate: Fourth Circuit argument. Cited 1×.
  10. Secondary source SBC Americas: Sixth Circuit argument. Cited 1×.
  11. Secondary source SBC Americas: Tenth Circuit. Cited 1×.
  12. Secondary source Connecticut sues Kalshi to prohibit sports event contracts, but immediate ban already rejected, Sports Betting Dime. Cited 1×, checked Sep 23, 2026.
  13. Secondary source Kalshi seeks Ninth Circuit rehearing as Robinhood takes Nevada fight to the Supreme Court, DeFi Rate, Sep 9, 2026. Cited 1×, checked Sep 23, 2026.

For the tax side of a Kalshi year, start at the Prediction Market Tax Center.

Questions people ask

Is the Supreme Court hearing the Kalshi case?

Not yet. As of September 2026 three petitions ask the Supreme Court to decide whether federal commodities law stops states applying their gambling laws to sports contracts on federally registered exchanges like Kalshi. The responses are due between October 14 and November 9, 2026, and only after briefing do the justices decide whether to take any of them.

Did Kalshi appeal to the Supreme Court?

No. Kalshi won in the Third Circuit, so New Jersey is the one asking the Supreme Court to step in, and Kalshi is the respondent. After losing in the Ninth Circuit, Kalshi asked the full Ninth Circuit to rehear its Nevada case instead of petitioning. Robinhood and Crypto.com, which lost there the same day, did petition.

What would a Supreme Court ruling mean for Kalshi in my state?

If the Court holds that federal law preempts state gambling law, states couldn't enforce their gambling laws against sports contracts on federally registered exchanges, and the Washington, Nevada and Michigan orders would likely be undone. If it holds that federal law doesn't, each state decides for itself and the current orders stand. Either way it would be a ruling about regulation, not about how your trades are taxed.

Keep reading

Browse all guides or start from the Prediction Market Tax Center.