Kalshi and Polymarket’s motion to halt state enforcement lawsuits denied; related cases to proceed in state courts

Odaily Odaily reports that the U.S. Ninth Circuit Court of Appeals has rejected requests by Kalshi and Polymarket to halt enforcement lawsuits filed by Nevada and Washington states regarding their prediction market operations. The related cases will continue to be heard in state courts. The three federal judges ruled that the two companies failed to demonstrate they would suffer irreparable harm by defending themselves in state court, nor did they sufficiently establish that the federal courts have "federal question jurisdiction" over the cases. The court noted that the states' allegations of unlicensed operations and suspected illegal gambling are primarily based on state law. The arguments raised by Kalshi and Polymarket regarding the preemptive application of federal law are merely defenses and cannot independently constitute grounds for federal jurisdiction. The court emphasized that principles of federalism and comity support allowing states to enforce their gaming regulations in their own state courts.