Parsons Behle & Latimer (Parsons) attorneys Sarah Ferguson and Ashley Nikkel, shareholders in the Reno office, represent the Nevada Council on Problem Gambling and The Dr. Robert Hunter International Problem Gambling Center. The attorneys filed amicus briefs in April 2026 supporting Appellee’s arguments about the necessity of state regulation of prediction markets. On August 28, 2026, a three-judge panel of the Ninth Circuit Court of Appeals agreed, ruling that the Nevada Gaming Control Board, the Nevada Gaming Commission, and their members in their official capacities may not be enjoined from enforcing state laws against Kalshi’s sports-related event contracts.
An appeal is now likely to come before the U.S. Supreme Court, after a previous Third Circuit Court of Appeals ruling in Philadelphia was contrary to this recent ruling in the Ninth Circuit Court.
Media coverage, including articles by Reuters, Associated Press and Nevada Current further detail the ruling.
The central issue in this case and other related cases, is whether sports contracts offered by designated contract markets (DCMs) like Kalshi and Crypto.com, are subject to the regulation of the Commodities and Futures Trading Commission (CFTC) or are subject to the regulation of the Nevada Gaming Control Board. Nevada state regulators have contended that sports bets offered by DCMs are subject to Nevada law and regulations which requires, among other things, that gambling-related businesses enforce responsible gambling regulations. The DCMs assert that federal law preempts Nevada state law, so they are not subject to the strict licensing requirements of Nevada law.
This is a critical and timely national issue, both legally and culturally, that has outcomes of particular importance to residents of Nevada. Of particular concern to Amici, as outlined by Parson’s filings: these “slick, easy to use platform[s] mimic[ ] traditional gambling, meaning that the risk associated with the use of the platform is high. . .the use of [these platforms] in the state of Nevada is a public health crisis waiting to happen."
Nevada’s leading problem gambling experts and regulators pushed back against sports betting offered by DCMs like Kalshi, arguing these “contracts” blur the line between financial trading and gambling, while bypassing Nevada’s longstanding regulatory system. Critics warn that DCMs could undermine Nevada’s tightly regulated gambling industry and worsen gambling addiction, particularly in sports betting.
Nevada regulators and public health groups have further argued that without state-level protection, including age verification, betting limits, and responsible gaming requirements, DCMs pose significant risks, including increased addiction and broader public health harm.
Ferguson is a shareholder in the firm’s commercial litigation, and employment and labor law practice teams. Nikkel is managing shareholder of the firm’s Reno office and focuses her practice on environmental, energy and natural resources, and litigation.
