Kalshi is seeking to block state regulatory enforcement after Nevada lost its injunction protection and will file an appeal during the process.

Odaily Planet Daily reports that prediction market platform Kalshi lost its preliminary injunction to block Nevada regulators' enforcement actions just before Thanksgiving and is currently appealing to the court to continue blocking the state's regulatory action. The court's decision to lift the injunction means Kalshi faces potential legal risks if it continues to operate in Nevada. Similar to Polymarket, Kalshi offers prediction contracts covering sports, politics, crypto, and traditional markets. It believes that obtaining a CFTC license would allow it to operate in all 50 states, but some state regulators—particularly in Nevada—disagree.

Following the lifting of the injunction, Nevada regulators stated that they would not immediately initiate enforcement proceedings until the court decides whether to grant a stay of execution; however, this does not equate to an administrative exemption granted by the court. The court has ordered state regulators to respond to Kalshi's application by December 8th, and Kalshi can submit his response by December 12th.

The report notes that while Kalshi was battling regulators in multiple states, its platform trading volume grew rapidly, and its valuation rose to $11 billion in a funding round led by Sequoia Capital. Certuity predicts that the prediction market size may reach $95.5 billion by 2035. Nevada regulators accused Kalshi of "continuously engaging in illegal activities" without a state gambling license, and emphasized that Crypto.com and Robinhood had both agreed to suspend their local operations during the appeal process. Crypto.com did not receive renewed injunction protection, and its prediction market operations were suspended in Nevada. (Decrypt)