A U.S. appeals court hears oral arguments from Kalshi and Nevada over the state's ban on prediction markets offering event contracts.

Techub News reported, according to Cointelegraph, the U.S. Ninth Circuit Court of Appeals heard oral arguments from lawyers representing the prediction market platform Kalshi and Nevada authorities regarding the state's ban on prediction markets offering event contracts. This appeal stems from a lower court ruling that prohibited Kalshi from offering certain event-based contracts in Nevada, citing the company's need to obtain a gaming license.

Both the appellate judge presiding over the oral arguments and Kalshi's lawyers acknowledged that the state had taken multiple enforcement actions against the company and other prediction market platforms, including criminal charges brought by Arizona. However, a federal court last week blocked Arizona authorities from applying the state's gambling laws to Kalshi's event contracts. "I think the existing case law really does indicate that what we really need to avoid is having state courts and federal courts adjudicate the exact same issue at the exact same time and potentially come to different results," said Colleen Sinzdak, representing Kalshi. The appeals court did not immediately announce a ruling following the oral arguments. Paul Grewal, Chief Legal Officer of Coinbase, stated that although the company is not a party to Kalshi's lawsuit, it has a stake in the prediction market dispute, and he speculated that the case could be appealed to the U.S. Supreme Court.