Guide

    Why Kalshi Filed En Banc While Robinhood Filed at the Supreme Court

    Two filings, two courts, one coordinated strategy. Kalshi asked the full 9th Circuit for rehearing on September 9; Robinhood went straight to the Supreme Court. Legal analysts describe this as a deliberate tag-team approach — here's what each filing means and how they fit together.

    En banc petition pending. Kalshi's petition for rehearing by the full 9th Circuit was filed September 9, 2026. This page updates when the court acts. Robinhood's Supreme Court petition was filed the same week. What the circuit split means for traders →
    Regulation
    Intermediate · 5 min
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    Why Did Kalshi and Robinhood File in Different Courts on the Same Ruling?

    Two weeks after the 9th Circuit ruled against sports event contracts, the platforms responded with a coordinated two-front strategy. Kalshi asked the full 9th Circuit to rehear the case. Robinhood went straight to the Supreme Court. Gaming law attorney Daniel Wallach, who tracks prediction market litigation, describes this as a deliberate tag-team approach — one designed to maximize the odds of reversing the ruling on at least one front.

    The Ruling They're Fighting

    9th Circuit — Aug. 28, 2026
    Ruled 3-0 that sports event contracts are not federal swaps — states can apply gambling laws to Kalshi, Robinhood, and Crypto.com's sports contracts.
    KalshiEX LLC v. Assad, No. 25-7516 · Judges Nelson, Bade, Lee
    3rd Circuit — Apr. 6, 2026
    Ruled for Kalshi: the Commodity Exchange Act gives CFTC exclusive jurisdiction — states cannot apply gambling laws to CFTC-regulated exchanges.
    KalshiEX LLC v. Flaherty · Circuit split confirmed

    Two federal appeals courts reached opposite conclusions on the same legal question. That conflict is the foundation of New Jersey's and Robinhood's Supreme Court arguments.

    What Each Company Filed

    Track A — Kalshi

    9th Circuit En Banc Petition

    FiledSeptember 9, 2026
    Docket
    CaseKalshiEX LLC v. Assad, No. 25-7516

    What Kalshi is asking

    Full rehearing by approximately 11 judges, rather than the 3-judge panel. Kalshi argues the panel's ruling is internally inconsistent: the court agreed the CFTC has exclusive jurisdiction over DCM-listed instruments, then said states can regulate sports contracts the CFTC approved for those same exchanges.

    “Kalshi now stands exposed to civil and criminal liability even though it is abiding by federal law and the mandate of its exclusive federal regulator.”
    If granted: Panel ruling vacated; full court rehears case
    If denied: Kalshi retains option to file its own SCOTUS cert petition
    Track B — Robinhood

    SCOTUS Cert Petition

    FiledSeptember 9–10, 2026
    SCOTUS DocketCheck scotus.gov for current information
    JoinsNJ AG petition (Sept. 2, 2026)

    What Robinhood is asking

    Petition for writ of certiorari on the same preemption question raised by New Jersey's Sept. 2 petition. Robinhood requests SCOTUS consolidate both petitions and grant expedited review, presenting two different angles on the same legal question — government enforcement (NJ) and commercial platform (Robinhood).

    Note: Robinhood has a separate, unrelated SCOTUS matter (Robinhood v. Sodha, an IPO securities case). This prediction markets cert petition is a distinct filing.

    If cert granted: SCOTUS takes case; arguments typically spring/fall 2027
    If cert denied: 9th Circuit ruling stands unless en banc reverses it

    Why the Two-Track Approach?

    Analysis attributed to gaming law attorney Daniel Wallach (@WALLACHLEGAL), who tracks prediction market litigation. Wallach has no disclosed commercial relationship with Kalshi or Robinhood.

    Why Kalshi Chose En Banc

    1

    An en banc petition automatically keeps the case active inside the 9th Circuit while the petition is pending, buying operational time before the ruling becomes fully enforceable across 9th Circuit states.

    2

    Lets Robinhood and New Jersey carry the Supreme Court vehicle — where their commercial-stakes and government-enforcement angles may present a stronger case for cert.

    3

    If en banc is granted, the 9th Circuit could reverse without SCOTUS involvement at all — the cleanest possible outcome.

    4

    If en banc is denied, Kalshi retains the option to file its own SCOTUS cert petition — making three separate petitions pressing the same question, which makes the Court more likely to grant review.

    Why Robinhood Filed Cert Now

    1

    Adds real-world commercial standing alongside New Jersey's government enforcement angle — two petitions pressing the same question from different legal postures is stronger than one.

    2

    Requesting consolidation with the NJ petition creates a single vehicle for SCOTUS to accept. The Court can address both at the same conference rather than granting two separate petitions.

    3

    Filing now (rather than waiting for en banc to resolve) keeps SCOTUS pressure on a parallel track — if Kalshi wins en banc, Robinhood can withdraw. If Kalshi loses, the cert vehicle is already in place.

    What This Means for Sports Contract Access by State

    The en banc petition does not restore sports contract access immediately. While it is pending, 9th Circuit states retain authority to enforce their gaming laws against prediction market platforms offering sports contracts.

    9th Circuit States — Current Status

    NevadaOriginal case state — sports contracts blocked by court order.
    WashingtonSeparate state enforcement active (independent of en banc).
    California, Arizona, OregonConfirm current sports contract availability at your platform's official site.
    Other 9th Circuit statesConfirm at your platform's official site.

    What Happens Next

    Editorial estimates based on typical appellate timelines. Not guaranteed court dates.

    Sept. 2, 2026NJ cert petition filed

    New Jersey AG filed the first cert petition at SCOTUS, pressing the 3rd/9th Circuit split.

    Sept. 9–10, 2026Kalshi en banc + Robinhood cert filed

    Kalshi petitioned the full 9th Circuit. Robinhood filed a separate SCOTUS cert petition, requesting consolidation with NJ's.

    Oct–Nov 2026 (approx.)9th Circuit votes on en banc; SCOTUS conferences on NJ + Robinhood petitions

    The 9th Circuit votes internally on whether to grant full-court rehearing. SCOTUS holds conferences to decide whether to take the cert petitions.

    Spring/Fall 2027 (if cert granted)SCOTUS oral arguments

    Approximately — the Court sets its own schedule. A decision would typically follow within that term.

    Summer 2027 (if cert granted)Possible SCOTUS decision

    Approximate. The Court's decision would resolve the preemption question nationally — binding on all circuits.

    What Traders Should Know

    Sports contract availability depends on your state and your platform — confirm at your platform's official site before placing any trade.

    No court has issued a nationwide ban on prediction markets or sports event contracts. Restrictions are state-by-state and vary by platform.

    En banc petitions and cert petitions are routine appellate steps — neither is a victory. Both courts could deny.

    Non-sports markets (elections, economics, weather) are on different legal ground. The 9th Circuit opinion explicitly remanded election contracts for further review.

    The CFTC is separately pursuing a rulemaking that would amend the special rule on gaming contracts — agency action could change the legal record before any court ruling.

    Confirm current sports contract access at your platform's official help center — not from news coverage or aggregator sites.

    Frequently Asked Questions

    Primary Sources

    9th Circuit — KalshiEX LLC v. Assad, No. 25-7516 (Aug. 28, 2026)

    Official 9th Circuit docket; en banc petition filed September 9, 2026.

    3rd Circuit — KalshiEX LLC v. Flaherty (Apr. 6, 2026)

    Third Circuit ruling holding federal preemption — the split NJ and Robinhood are pressing at SCOTUS.

    SCOTUS Docket — New Jersey cert petition (Sept. 2, 2026)

    NJ AG's petition; Robinhood filed a separate petition Sept. 9–10. Check scotus.gov for current dockets.

    CFTC — Designated Contract Market Oversight

    CFTC's regulatory authority over DCMs — the basis of Kalshi's federal preemption argument.

    New Jersey AG — SCOTUS cert petition announcement (Sept. 2, 2026)

    Official NJ AG press release confirming the first cert petition in this litigation.

    Tier-2 press (Law360, Ars Technica, NPR, Sportico, The Hill) used as corroboration only. All factual claims trace to primary sources above.

    Editorial disclosure: PredictionMarkets.US has no commercial relationship with Kalshi, Robinhood, or any party to this litigation. This page is an independent editorial summary. It is not legal advice. Confirm your state's current status and your platform's current offerings at that platform's official site.

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