In brief
- The Ninth Circuit has denied Kalshi’s emergency request for an administrative stay
- Nevada can now file a civil enforcement action and seek a TRO
- Kalshi may turn to the Supreme Court’s emergency docket to block enforcement
Federal appeals judges have rejected Kalshi’s emergency request to pause enforcement in its legal fight with Nevada regulators, a procedural setback that could allow the state to move swiftly to shut down the prediction-market operator’s activities.
The Ninth Circuit Court of Appeals on Tuesday denied Kalshi’s motion for an administrative stay, according to posts on X by sports-betting and gaming attorney Daniel Wallach.
The decision removes a temporary shield that would have blocked Nevada from pursuing civil enforcement while the court considers a broader request for relief.
It comes as U.S. regulators and state authorities are taking a harder line against prediction markets that allow users to wager on real-world events, testing the boundaries between federally regulated derivatives and state gambling laws.
With no stay in place, Nevada is now free to file a civil enforcement action in the state court as early as Tuesday evening, Wallach said, adding that a temporary restraining order is expected within days.
Such an order would likely force Kalshi to halt operations in the state while the dispute proceeds.
The case centers on whether Kalshi’s event-based contracts fall under federal commodities regulation, overseen by the Commodity Futures Trading Commission, or whether states retain authority to restrict the products as unlawful sports betting or gaming.
Kalshi has argued that federal law preempts state enforcement, pointing to its status as a CFTC-regulated exchange.
Nevada regulators have rejected that view, asserting jurisdiction over products offered to residents within the state.
Wallach said Kalshi’s next move could be an emergency application to the U.S. Supreme Court, potentially as soon as Tuesday night.
The court’s emergency, or “shadow,” docket allows justices to issue short-term administrative stays to preserve the status quo while lower-court proceedings continue.
Such intervention is discretionary and typically reserved for cases where immediate enforcement would cause irreparable harm.
The Ninth Circuit’s denial does not resolve the underlying legal questions, but it shifts near-term leverage toward Nevada, increasing the likelihood of rapid enforcement absent of a Supreme Court action.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
The two major parties in the United States are pushing a bill to curb "insider trading in prediction markets," with fines up to twice the profits gained.
U.S. lawmakers have introduced the "2026 Financial Prediction Market Public Integrity Act," which aims to prohibit government officials from using non-public information to place bets in prediction markets and requires the reporting of bets exceeding $250. The bill broadly defines insider information, with violations facing penalties of up to double the profits gained. This legislation reflects an increase in U.S. regulation of prediction markets.
MarketWhisper7m ago
Cathie Wood's ARK taps Kalshi data to help make investment calls
Tech-focused asset manager ARK Invest said it will start using Kalshi’s prediction market data to improve how it makes its investment decisions, one of the latest cases demonstrating the broader value of prediction market data beyond trading.
According to a statement from Kalshi, ARK will use predi
Cointelegraph34m ago
Polymarket adds a new prediction event: When will the Trump administration terminate the criminal investigation into Powell? The probability of termination before June is 56%.
Polymarket has added a new event "When will the Trump administration terminate the Powell criminal investigation," with data showing a 39% probability of termination before April 30 and 56% before June 30. The market settles based on official information, and the investigation stems from Powell's testimony to Congress. Trump has stated that there are currently no plans to advance the investigation.
GateNews40m ago
Hey Anon Announces Launch of “Pandora” Prediction Market on Ethereum
Hey Anon launches Pandora, a decentralized AI-driven prediction market on Ethereum, empowering users to create transparent markets without central control. The platform features unique AI consensus mechanisms and aims to innovate the prediction market landscape.
CoinDesk1h ago
Messari: Polymarket's optimistic valuation expectation for 2028 will reach $111.2 billion.
BlockBeats news, on March 27, Messari senior analyst Austin Weiler conducted a valuation assessment of the prediction market Polymarket in his latest research report. The report states that after implementing the fee structure, three scenarios can be predicted for the fully diluted valuation (FDV) of Polymarket by 2028 based on its current market share:
Optimistic expectation: $111.2 billion;
Neutral expectation: $24.2 billion;
Pessimistic expectation: $6.4 billion.
BlockBeatNews2h ago
Polymarket's probability of gold falling below $4,300 by the end of March has risen to 39%, up 21% in the past 24 hours.
On March 27, as gold prices declined, the probability of the event "Gold falling below $4,300 by the end of March" on Polymarket rose to 39%. International crude oil futures surged significantly due to uncertainties in US-Iran negotiations, while the three major U.S. stock indices fell. Meanwhile, spot gold dropped to $4,402.51, down 0.55% over 24 hours.
GateNews3h ago
