Prediction market provider Kalshi could be hit with a temporary restraining order in Nevada after a federal appeals court declined on Thursday to block such a motion.
The Nevada Gaming Control Board issued a cease-and-desist order to Kalshi in March 2025, ordering it to stop offering sports-related prediction market contracts. However, the state of Nevada later filed for a temporary restraining order “in an attempt to prohibit Calsey from offering all activity contracts,” Calsey said. Kalshey is trying to move the case to federal court, but if the appeals court does not grant the administrative stay, the case will return to state court.
On Thursday, a Ninth Circuit Court of Appeals panel denied Kalshey’s motion for an administrative stay in the federal case, clearing the way for the case to return to state court.
In the appeal filed on March 13, Calsey warned that the company “will face imminent harm” if the appeals court does not grant its motion because “the state court proceedings will impair Calsey’s right to appeal in this appeal” and related litigation.
The platform said it could find itself litigating the same issue, whether Nevada regulators have jurisdiction, in four different venues, including a Nevada state court, a Nevada federal court and two different appeals court cases.
“Allowing this to happen would create an unacceptable risk, exposing Kalshi to conflicting rulings from federal and state courts,” the filing states. “For example, a state court could rule against Kalshi, holding that the CEA did not preempt state gambling laws, while an Assad court could rule against Kalshi. [another case] Come to the exact opposite conclusion. “
Gambling attorney Dan Wallach posted on
He said a temporary restraining order could be issued within the next day or so.
Kalshey and other prediction market providers have faced pushback in more than a dozen state actions, with state regulators arguing that they have jurisdiction over at least sports-related betting products. The CFTC argued that it has sole jurisdiction over prediction market providers and filed an amicus brief in one of the federal cases to defend that position.
The CFTC even signed a memorandum of understanding with Major League Baseball, which was announced at the same time Major League Baseball announced its partnership with Polymarket.
