TUCSON, Ariz., Aug. 31, 2026 (GLOBE NEWSWIRE) -- On August 28, the U.S. Court of Appeals for the Ninth Circuit, which is the largest federal appellate court encompassing nine Western States, unanimously issued a stunning blow against predatory gambling on prediction markets in KalshiEX, LLC v. Assad (No. 25-7516). The gambling crisis over cell phones, using prediction markets, has harmed millions of Gen Z, particularly boys and young men.

The Association of American Physicians and Surgeons (AAPS) was the only national medical group to file an amicus brief in this landmark case. The Ninth Circuit panel, composed entirely of Trump-appointed judges, agreed with arguments presented by AAPS.

The Court observed that “sports betting is a quintessential form of gambling” while ruling that this activity is traditionally regulated by the States, in this case Nevada. Kalshi does not likely have a right to bypass State regulations by peddling gambling directly to millions of people on their cell phones and other devices that access the internet.

The Court embraced the argument presented by AAPS that the major questions doctrine prevents a reinterpretation of an ambiguity in an old law by Kalshi in order to evade State limitations on its product. The Dodd-Frank Act to regulate Wall Street after the 2008 financial crisis did not unwittingly preempt a century-worth of limitations on gambling activities by States, such that sports gambling would essentially become unregulated.

“Gambling is the opiate of the masses,” commented Jane Orient, M.D., the Executive Director of AAPS. “Recall how the lottery was used in George Orwell’s 1984 in order to control the public.”

This decision against sports gambling on prediction markets, in bypass of State laws, sets up review of this issue by the U.S. Supreme Court, which will soon receive a petition for cert by New Jersey on a decision by the Third Circuit that reached the opposite conclusion.

“This circuit split between the Ninth and Third Circuit virtually assures Supreme Court review, with a decision from it expected by next spring,” stated Andrew Schlafly, General Counsel to AAPS.

The Association of American Physicians and Surgeons (AAPS) is a national organization representing physicians in all specialties, as founded in 1943, and its motto is “all for the patient.”

Contact: Jane M. Orient, M.D., (520) 323-3110, janeorientmd@gmail.com, or Andrew Schlafly, (908) 719-8608, aschlafly@aol.com.