CA ยท Checked Oct. 21, 2026
Prediction market law in California
No public action found
California has not acted against prediction markets, but the Ninth Circuit held that two tribes are likely to show Kalshi's sports contracts on their land violate federal Indian gaming law.
California officials have not sent cease-and-desist letters or sued a prediction market, and three 2026 Assembly bills touching prediction markets did not pass. In a suit by Blue Lake Rancheria and Chicken Ranch Rancheria, the Ninth Circuit held on September 16, 2026, that the tribes are likely to show Kalshi's sports contracts on tribal land violate the Indian Gaming Regulatory Act. It sent the case back to the district court to weigh the remaining injunction factors. Attorney General Rob Bonta has joined multistate filings defending state authority over sports event contracts.
Timeline of state actions
Court order, Kalshi, Robinhood
The Ninth Circuit's mandate was entered in the district court, which set a case-management conference for October 21, 2026.
Source: DeFi Rate legal tracker
Court order, Kalshi, Robinhood
A unanimous Ninth Circuit panel (No. 25-7504; Judges Murguia, McKeown and Paez) reversed the denial of a preliminary injunction on the IGRA claim, finding the tribes likely to succeed, and remanded for the other injunction factors without itself ordering an injunction; it affirmed dismissal of the tribes' Lanham Act claim.
Source: InGame
Other development, Kalshi
Attorney General Bonta joined a 37-state amicus brief in the Sixth Circuit supporting Ohio's authority to apply its gaming laws to Kalshi.
Other development
The California attorney general was one of 41 attorneys general on a comment letter asking the CFTC to confirm in rulemaking that it lacks jurisdiction over sports-related event contracts.
Court order, Kalshi, Robinhood
Judge Jacqueline Scott Corley denied the tribes' motion for a preliminary injunction (month only reported); the tribes appealed.
Tribal action, Kalshi, Robinhood
Three tribes sued Kalshi and Robinhood in the Northern District of California, alleging sports contracts offered on their lands violate IGRA and their compacts.
Source: DeFi Rate legal tracker
Laws and bills
AB 1840Failed
Political Reform Act of 1974: prediction markets
Would have barred certain officials, employees and lobbyists from trading on prediction markets using material nonpublic information.
Source: ncsl.org
AB 2446Failed
Attorney General: investigations: prediction markets
Would have required the attorney general to investigate large prediction-market payouts tied to national security events.
Source: ncsl.org
AB 2617Failed
Protecting Kids from Online Gambling Act
Would have barred offering online gambling or prediction-market wagering to minors, with civil penalties.
Source: ncsl.org
Court cases
- Blue Lake Rancheria, et al. v. Kalshi, Inc., et al.Remanded
- James v. Kalshi, Inc. et al. (private class action)
- Chehal et al. v. Robinhood Markets, Inc. et al. (private class action, consolidated)