Home / Play / Ninth Circuit Decision in Kalshi v. Assad Bears Ramifications With Montana Lawsuit 'Settlement'

Ninth Circuit Decision in Kalshi v. Assad Bears Ramifications With Montana Lawsuit 'Settlement'

Legal Writer

Publish Date: Sep 18, 2026

Fact checked by: Matt Moreno

Key Points

Kalshi and Montana officials have jointly asked a federal court to dismiss the company's lawsuit against the authorities
Request for dismissal references pending appeals of Ninth Circuit's opinion in Kalshi v. Assad
Stipulations of dismissal entrench Montana's indifference to event contract trading on Kalshi's platform

Kalshi's lawsuit against Montana state government figures could soon officially become a non-concern for the parties involved. Both sides of the dispute have submitted a joint agreement to abandon the action to the US District Court for the District of Montana.

The agreement states that Montana officials could revive the matter if a ruling from the US Ninth Circuit Court of Appeals holds up to higher reviews, though. Those officials do not seem anxious to do so, though.

Kalshi, Montana present court with resolution to lawsuit

Among all the complaints that Kalshi has filed against state government figures to date, it's action against Montana authorities has been one of the least intense. That amicability showed in a Thursday filing from all parties.

Kalshi has asked the court to dismiss its lawsuit with prejudice in light of new agreements with the defendants. Those agreements center on a non-enforcement commitment.

In exchange for Kalshi dropping the case, Montana gambling regulators have promised to take no action against Kalshi. However, there are two tenets that complicate the situation.

Ninth Circuit ruling in Kalshi v. Assad bears influence in Montana

The joint dismissal stipulation states that the non-enforcement commitment would bind Montana gaming regulators "until the later of (i) Kalshi’s request for further review being denied, or (ii) the issuance of an en banc decision." That sentence refers to Kalshi's request currently before the Ninth Circuit in Kalshi v. Assad.

Kalshi v. Assad is the company's litigation against Nevada authorities. It asked for an en banc hearing (a review of a panel decision by the full court) of an opinion from a three-judge panel out of the Ninth Circuit.

That opinion deemed the trading of sports event contracts as gambling. It also gave Nevada officials further legal clearance to continue to enforce their gambling laws against Kalshi.

Because Montana is also within the Ninth Circuit's jurisdiction, that ruling has relevance in the state. Kalshi has acknowledged that Montana Attorney General Austin Knudsen may move on the matter with the backing of the court in the dismissal stipulation.

However, there is reason to doubt whether that will be the case even with clearer direction from federal courts.

Kalshi has already acknowledged Montana's indifference

Kalshi filed its lawsuit against Knudsen and others after receiving a second cease-and-desist demand from gambling regulators. The complaint included a request for the district court to enjoin the regulators from enforcing that demand.

The court denied that request. In doing so, it referred to Kalshi's participation in proceedings to stay the case as evidence that it had not shown that it would suffer irreparable harm if the injunction was not granted.

Additionally, the court ordered Montana officials to respond to the complaint, as they had not yet done so. This joint stipulation in which those authorities agreed to non-enforcement clauses represent that court-ordered response.

As a result, Knudsen may not take action against Kalshi even if the Ninth Circuit panel opinion holds up to further scrutiny. This dismissal agreement gives Kalshi a greener light to continue to operate in Montana.

Looking for more news and updates? Head over to our Ballislife Play page.

Play

Michigan Gambling Regulator Issues More Cease-And-Desist Orders to Sweepstakes Casinos

The Michigan Gaming Control Board has continued to make its best efforts to curtail unlicensed gambling within the state's borders by sending letters demanding that the operators of more gaming websites stop servicing players in Michigan. The latest round of cease-and-desist distribution includes 33 targeted websites. The list includes several ...

by Derek Helling

Oct 09, 2026