A federal judge’s order blocking Arizona from prosecuting online prediction market company Kalshi for violating the state’s gambling laws is living on borrowed time after the 9th U.S. Circuit Court of Appeals ruled that gambling on sporting events is not protected by the federal law that otherwise allows prediction market firms to operate. The ruling, which came in a similar but separate Nevada case, directly undercuts the rationale used by federal Judge Michael Liburdi earlier this year when he issued an injunction stopping Arizona Attorney General Kris Mayes from prosecuting Kalshi and suing the firm for violating Arizona’s gambling laws and a law that makes it illegal to bet on election outcomes in the Grand Canyon State. Arizona could use the Nevada decision to argue that Liburdi should allow the Arizona case to proceed.…