The story so far
written Sep 25What is happening
Kalshi faces a halt on event contracts involving activities on Native American lands following a September 16, 2026, ruling by the U.S. Court of Appeals for the Ninth Circuit [5], [10]. The decision impacts the platform's ability to offer sports-related contracts that three tribal nations—Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians—claim infringe on their jurisdiction [3], [11]. The appellate panel's ruling overturned a previous lower court decision from November 2025 that had allowed the contracts to proceed [11].
Separately, the Commodity Futures Trading Commission (CFTC) is pursuing a lawsuit filed June 18, 2026, in the District of Columbia regarding Kalshi's "perpetual contracts" [4]. This litigation follows the agency's decision to drop its appeal in a different case where the D.C. Circuit Court of Appeals had upheld Kalshi's right to offer election-related event contracts [9], [12].
What to watch
Kalshi Inc. and Susquehanna International Group must file their response to a civil complaint in the Southern District of New York by September 30, 2026 [2]. This deadline follows the transfer of the case from Alabama in February 2026 [2].
Future developments depend on whether a federal district court issues a final ruling on Kalshi’s compliance with state gambling statutes or if the U.S. Supreme Court acts on pending petitions for certiorari [15]. A final regulatory action or settlement from state gambling authorities would also resolve current uncertainties regarding the platform's event markets.
Read the full brief · how we got here
How we got here
The current legal landscape follows a series of challenges to Kalshi's expansion into specialized event markets. In November 2025, a lower court initially denied a preliminary injunction sought by tribal groups, which allowed Kalshi to continue offering certain sports-related contracts until the Ninth Circuit intervened this month [3], [11].
Before the current disputes over tribal lands and perpetual contracts, the D.C. Circuit Court of Appeals ruled in favor of Kalshi regarding election-based contracts [12], [17]. The CFTC subsequently dismissed its appeal of that ruling, shifting its regulatory focus to other contract types [9]. In early 2026, a civil action involving Kalshi was moved from Alabama to New York, where it remains pending [2].
References · 10
- [2]dockets.justia.com — Jennings v. Kalshi Inc. et al 2:2026cv00071 | U.S. District Court for ...
- [3]dockets.justia.com — Blue Lake Rancheria et al v. KALSHI INC. et al
- [4]courthousenews.com — PDF In the United States District Court for The District of Columbia
- [5]cdn.ca9.uscourts.gov — PDF United States Court of Appeals for The Ninth Circuit
- [9]bettermarkets.org — By Dismissing Its Appeal in the Kalshi Case, the CFTC Turns Its Back on ...
- [10]reuters.com — US appeals court blocks Kalshi from offering event contracts on Native ...
- [11]gaming.net — Ninth Circuit Revives Tribal Challenge to Kalshi Sports Contracts
- [12]lawfold.com — Kalshi Lawsuit 2026: Your Rights (Updated Sept 2026)
- [15]apcw.org — PDF Supreme Court of the United States
- [17]caselaw.findlaw.com — KALSHIEX LLC v. COMMODITY FUTURES TRADING COMMISSION (2024)
What would close this
0 of 4 metTimeline
newest firstWhen we started following: Ninth Circuit blocks Kalshi event contracts on tribal lands as CFTC litigation shifts to perpetual contract disputes
The U.S. Court of Appeals for the Ninth Circuit issued a ruling on September 16, 2026, blocking Kalshi from offering event contracts related to activities on Native American lands [5], [10]. This decision follows an appeal by Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians, who challenged a lower court's November 2025 denial of a preliminary injunction [3], [11]. The appellate panel's ruling effectively revives the tribal challenge against Kalshi's sports-related contracts [11].
In separate federal litigation, the Commodity Futures Trading Commission (CFTC) filed a lawsuit in the District of Columbia on June 18, 2026, regarding Kalshi's "perpetual contracts" [4]. This follows the CFTC's earlier decision to dismiss its appeal in a primary case involving election-related event contracts, which had been upheld by the D.C. Circuit Court of Appeals [9], [12].
Additionally, a civil action filed by a private plaintiff in Alabama was transferred to the Southern District of New York on February 26, 2026 [2]. The defendants, including Kalshi Inc. and Susquehanna International Group, have a deadline of September 30, 2026, to respond to the complaint following a venue transfer and extension granted by the court [2].