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
Prediction Market Trading Volume Expected to Exceed $1 Trillion by 2030, Bernstein Report Highlights
Bernstein's report forecasts prediction market trading volume will surge from $51 billion in 2025 to $1 trillion by 2030, driven by regulatory clarity, blockchain support, and mainstream integration. Industry revenue is expected to rise from $400 million to $10.8 billion, with retail brokerages gaining a competitive edge.
GateNews6h ago
Trader with 100% Win Rate Bets $12.3K That MicroStrategy Will Hold Over 1M BTC by Year-End
A trader known as epsteinfiles has placed a $12,300 bet with Lookonchain, predicting that MicroStrategy will hold over 1 million BTC by December 31, 2026, with a flawless track record in past bets.
GateNews16h ago
Encourage innovation! U.S. judges ban Arizona from regulating prediction markets, pausing the prosecution of Kalshi
A U.S. federal district court ruled that Arizona is barred from bringing charges against prediction market platform Kalshi under gambling laws, finding that the Federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in regulating financial markets. Kalshi, meanwhile, insists that its business falls under financial products rather than traditional gambling. Rulings by different states on prediction markets have varied, and the Trump family has also voiced support for prediction markets.
CryptoCity17h ago
21Shares 更新 Hyperliquid ETF 申請，揭露 THYP 代碼
21Shares updates its Hyperliquid ETF filing, confirming the stock ticker THYP, which is seen as an adjustment in response to SEC comments. This move increases the likelihood of the ETF being listed. Compared with Bitwise’s HYPE ETF, the latter has already announced a 0.67% management fee, one of the highest in the market. The Hyperliquid platform’s strong fundamentals attract attention, but given the uncertainty around inflows of meme-coin ETF funds, market demand still needs to be watched.
MarketWhisper17h ago
Major CEX Partners with High Roller Technologies to Enter Prediction Market Space
A major centralized exchange has partnered with High Roller Technologies to provide prediction market services in the U.S. Analysts project significant growth in this sector, although it faces regulatory challenges.
GateNews19h ago
Encourage innovation! A U.S. judge bans Arizona’s regulation of prediction markets and suspends the prosecution of Kalshi
A U.S. federal district court ruled that Arizona may not rely on its gambling law to prosecute the prediction market platform Kalshi, finding that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the line between state and federal authority in financial market regulation, while Kalshi maintains that its business is a financial product rather than traditional gambling. Decisions by states on prediction markets have differed, and the Trump family has also expressed support for prediction markets.
CryptoCity20h ago
