According to ChainCatcher, the U.S. Ninth Circuit Court of Appeals rejected the application of prediction market platform Kalshi, allowing Nevada regulators to enforce a temporary restraining order prohibiting it from offering contracts related to sports events.
Previously, the Nevada Gaming Control Board determined that Kalshi's products constituted unlicensed sports betting and issued a cease and desist letter in March. Kalshi, however, maintains that its event contracts fall under the jurisdiction of the U.S. Commodity Futures Trading Commission.
The report states that because the temporary restraining order is not appealable under state law, Kalshi is expected to withdraw from the Nevada market for at least 14 days until the preliminary injunction hearing is held. In addition, several other prediction market platforms, including Polymarket, Crypto.com, and Coinbase, are also facing regulatory pressure from multiple states.
