The U.S. Court of Appeals for the Ninth Circuit heard oral arguments in Kalshi’s dispute with Nevada over whether its prediction market event contracts are federally regulated swaps or products subject to state gambling rules. Nevada argues Kalshi needs a state gambling license, while Kalshi maintains its contracts fall under the exclusive jurisdiction of the CFTC and should not be governed by Nevada gaming law. Legal observers expect the case could eventually reach the U.S. Supreme Court, highlighting its potential importance for the regulation of U.S. prediction markets.