Ninth Circuit Rules Kalshi Sports Contracts Not Swaps

This ruling sharpens a live legal split between circuits on how event contracts are classified, which matters because the answer determines which regulator—the CFTC or state authorities—has oversight. The Ninth Circuit's reasoning that sports contracts are not swaps could influence how similar products are treated elsewhere, but the conflict with the Third Circuit means the issue is far from settled. What is worth watching is whether this divergence prompts federal legislation or a Supreme Court review to standardize the definition, as the current patchwork creates uncertainty for platforms operating across state lines.