Attorney General Mayes Celebrates Ninth Circuit Ruling Affirming State Authority to Regulate Sports Betting

PHOENIX — Attorney General Kris Mayes today issued the following statement after the U.S. Court of Appeals for the Ninth Circuit ruled in KalshiEX, LLC v. Assad that the Commodity Exchange Act does not preempt Nevada's authority to regulate Kalshi's sports event contracts as sports betting:

This is a significant win for states' authority to regulate gambling operations. Calling a sports bet a 'swap' doesn't make it one. States like Arizona have built a comprehensive system to regulate gaming and today’s ruling affirms those regulations. Financial reform legislation was never intended to strip states of their traditional police power over gambling, and I'm glad the court said so clearly. Kalshi's position would have effectively federalized sports betting regulation nationwide and swept aside decades of state and Tribal oversight built to protect consumers from the real harms of unregulated gambling. My office is reviewing today's opinion closely, including its implications for our own ongoing litigation with Kalshi. I remain committed to enforcing Arizona's gaming laws and will continue to defend the State's authority to do.