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Ninth Circuit denies Kalshi rehearing in Nevada case; Second Circuit refuses injunction

The ban on Kalshi's sports contracts in Nevada stays in place, and Kalshi now has about 90 days to ask the Supreme Court to step in. The Second Circuit left New York and Connecticut free to enforce their gambling laws against Kalshi and, in Connecticut, Coinbase.

November 4, 2026 · Effective · Verified 2026-11-07 via reputable press (2+ outlets)

The Ninth Circuit on 4 November 2026 denied Kalshi's requests for panel rehearing and full-court rehearing of its August ruling for Nevada regulators, with no judge asking for a full-court vote. A day earlier the Second Circuit refused to block New York and Connecticut from enforcing their gambling laws while Kalshi and Coinbase appeal.

The August ruling upheld the end of an injunction that had shielded Kalshi from Nevada enforcement, finding that its sports event contracts are not swaps protected by federal law. The sports contract ban in Nevada remains in place, CDC Gaming reports. Kalshi can petition the Supreme Court within 90 days, which DeFi Rate puts at 2 February 2027 unless extended. The justices do not have to take the case.

Outlets differ on how far the order reaches. InGame says states across the circuit can now enforce their gambling laws against Kalshi. DeFi Rate says the August opinion binds federal courts in those nine states but the denial does not itself impose a ban in any of them. Those states are Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington.

The Second Circuit's 3 November order covers three appeals: Kalshi against New York, Kalshi against Connecticut and Coinbase against Connecticut. It says only that the companies failed to show an injunction pending appeal is warranted. It is not a ruling on the merits, and the appeals continue. It bans no contract by itself, but state-court suits in both states could now lead to bans. InGame reports the CFTC has told Kalshi to disobey any New York order if one takes effect. Coinbase's appeal, Coinbase Financial Markets v. Tong (No. 26-2297), concerns Connecticut only. Coinbase separately agreed in October to stop sports event contracts in Michigan by 10 October, the state's gaming regulator said; that deal leaves the legal dispute open.

Federal appeals courts are split: the Third Circuit sided with Kalshi against New Jersey, which has asked the Supreme Court to review that ruling, while the Sixth and Ninth Circuits sided with states. The CFTC is also writing rules on event contracts, with comments due 18 November, CDC Gaming reports. We read the Second Circuit order on the court docket; the Ninth Circuit order is as quoted in the press.

“The full court has been advised of the petition for rehearing en banc and no judge has requested a vote on whether to rehear the matter en banc.”

— Ninth Circuit order, as quoted by InGame

Who this affects

Kalshi users in Nevada, New York, Connecticut and other Ninth Circuit states who trade sports contracts, and Coinbase prediction-market users in Connecticut.

Kalshi at a glance

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