PHOENIX — A federal appeals court has breathed new life into efforts by Attorney General Kris Mayes to prosecute an online gambling site for violating Arizona gaming laws.
The 9th Circuit Court of Appeals on Friday rejected arguments by Kalshi that it is exempt from the oversight by the Nevada Gaming Commission because its activities are regulated by federal law. The three-judge panel said the regulations of the Commodities Exchange Act under which Kalshi operates do not preempt state oversight of wagering on sports.
What makes that significant is a federal judge in Arizona had barred Mayes from pursuing Kalshi on criminal charges based on his conclusion that the Commodities Futures Trading Commission has exclusive jurisdiction over what it calls the trading of “swaps.”
