U.S. Appeals Court Upholds Nevada Ban, Kalshi Prohibited from Offering Sports Prediction Contracts

Odaily News The U.S. Ninth Circuit Court of Appeals has rejected an application from prediction market platform Kalshi, allowing Nevada regulators to enforce a temporary restraining order that prohibits it from offering contracts related to sporting events.

Previously, the Nevada Gaming Control Board determined that Kalshi's related products constituted unlicensed sports betting and issued a cease-and-desist letter in March. Kalshi argued that its event contracts fall under the jurisdiction of the U.S. Commodity Futures Trading Commission.

The report states that as the related temporary restraining order is not appealable under state law, Kalshi is expected to exit the Nevada market for at least 14 days until a preliminary injunction hearing is held. Furthermore, multiple prediction market platforms, including Polymarket, Crypto.com, and Coinbase, are also facing regulatory pressure in several states. (Cointelegraph)