Federal Appeals Court Rejects Kalshi Bid to Pause Nevada Enforcement
The Ninth Circuit Court of Appeals denied Kalshi’s request for an administrative stay, removing a temporary barrier and allowing Nevada regulators to pursue civil enforcement against the prediction-market platform. This decision could lead to Nevada swiftly seeking a court order to stop Kalshi’s operations in the state. The dispute centers on whether Kalshi’s event contracts are federally regulated commodities or illegal gambling products under state law. Kalshi claims that its status as a federally regulated exchange under Commodity Futures Trading Commission rules should preempt state enforcement. Nevada disagrees, asserting state authority over products offered to its residents. With the stay denied, Nevada can act quickly, and Kalshi may seek an emergency intervention from the U.S. Supreme Court. The appeals court’s decision does not settle the core legal issue but increases the likelihood of immediate enforcement by Nevada unless higher court action intervenes.
