Kalshi Could Be Forced Out of Nevada — Here’s Why That Matters for Crypto Prediction Markets

TLDR

• The Ninth Circuit Appeals Court denied Kalshi’s emergency request to block Nevada enforcement
• A temporary restraining order against Kalshi now appears imminent, forcing it to pause Nevada operations for at least 14 days
• Nevada’s Gaming Control Board issued a cease-and-desist to Kalshi in March over unlicensed sports betting
• Kalshi argues its contracts fall under federal CFTC jurisdiction, not state gambling law
• Connecticut, New York, New Jersey and other states are also pursuing similar actions against Kalshi and rival platforms

The Ninth Circuit Appeals Court has denied Kalshi’s emergency request to block Nevada from enforcing a restraining order against its sports-event contracts. The ruling clears the way for state regulators to act.

https://twitter.com/coinbureau/status/2024026094609768527?s=20

The Nevada Gaming Control Board sent Kalshi a cease-and-desist in March. It claims Kalshi’s sports-event contracts amount to unlicensed sports betting under Nevada law.

Gaming lawyer Daniel Wallach said a temporary restraining order now looks imminent. Under Nevada law, a TRO cannot be appealed, meaning Kalshi would have to exit the state for at least 14 days.

https://twitter.com/WALLACHLEGAL/status/2034674972522680587?s=20

Kalshi pushed back in court, saying its contracts are regulated solely by the Commodity Futures Trading Commission. It argued that blocking those contracts would cause “imminent harm” to the company.

The case now returns to federal court while Nevada moves forward with its enforcement action.

Kalshi Warns of Conflicting Court Rulings

In a March 13 motion, Kalshi said allowing Nevada to proceed while federal litigation is still active creates a real risk of contradictory decisions.

Kalshi said the two courts could reach “exactly the opposite conclusion” on whether federal commodities law overrides state gambling rules. The company warned this could “create jurisdictional chaos.”

The debate centers on who has the final say — federal regulators or state gaming authorities.

Other States Are Pushing Back Too

Nevada is not acting alone. Connecticut, New York, New Jersey and several other states have also moved against sports-event contracts offered by prediction market platforms.

Kalshi is not the only company facing legal pressure. Crypto.com, Polymarket and Coinbase are also in legal disputes with multiple states over similar products.

Prediction markets have grown fast. Weekly trading volumes across platforms like Kalshi and Polymarket now regularly top $2 billion, according to Dune Analytics.

That growth has drawn attention from lawmakers concerned about insider trading and market manipulation.

Kalshi has maintained throughout the legal battles that state regulators do not have the authority to restrict federally regulated event contracts.

The next key step is a preliminary injunction hearing, which will determine whether Kalshi can resume operating in Nevada while the broader legal fight continues.

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