Kalshi faces a more immediate block in Nevada after a federal appeals court denied its emergency request to stop lower court action. As a result, Nevada regulators can move forward with efforts to restrict Kalshi sports event contracts in the state. The ruling adds pressure to a legal fight over whether those contracts fall under federal commodities law or state gambling law.
The Ninth Circuit Appeals Court denied Kalshi’s request to stay a lower court proceeding. Therefore, the case now returns to federal court while Nevada keeps pushing for action. According to the report, this step allows state regulators to continue seeking a temporary restraining order against the company.
Gaming lawyer Daniel Wallach said a temporary restraining order against Kalshi now appears close. He added that the company may have to stop operating in Nevada for at least 14 days until a preliminary injunction hearing takes place. Wallach said,
“Since a TRO is not appealable under Nevada law, Kalshi would be required to exit the state in the interim.”
Kalshi Nevada ban fight centers on sports event contracts
The dispute began after the Nevada Gaming Control Board sent Kalshi a cease and desist letter in March. The regulator argued that Kalshi sports event contracts amount to unlicensed sports betting under Nevada law. Because of that, the state said the company could not legally offer those contracts there.
However, Kalshi has argued that its contracts fall under the sole authority of the Commodity Futures Trading Commission. In court, the company said the federal government has jurisdiction over its event contracts, not the states. It also argued that any block on its contracts would cause “imminent harm.”
That clash now sits at the center of the Kalshi Nevada ban fight. On one side, Nevada says these products look like gambling and must follow state rules. On the other side, Kalshi says they are federally regulated derivatives. Therefore, the case has become part of a larger debate over where prediction markets fit in U.S. law.
Kalshi appeals court loss adds pressure as prediction markets face scrutiny
In a motion filed on March 13, Kalshi said allowing Nevada to proceed while federal litigation remains pending could create conflicting rulings. The company argued that courts could reach “exactly the opposite conclusion” on whether federal commodities law overrides state gambling law. It added that such a result could create “jurisdictional chaos.”
At the same time, the pressure on prediction markets has grown. The report said weekly trading volumes on platforms such as Kalshi and Polymarket now consistently exceed $2 billion, based on Dune Analytics data. That growth has also brought more scrutiny from lawmakers over insider trading and market manipulation.
Meanwhile, Nevada is not the only state taking action. Regulators in Connecticut, New York, New Jersey, and other states have also challenged sports event contracts. In addition, Kalshi, Crypto.com, Polymarket, and Coinbase are now dealing with legal battles across multiple states. So, the Kalshi appeals court loss in Nevada matters beyond one market. It also shows how state regulators are testing the limits of prediction market platforms across the country.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 20, 2026 • 🕓 Last updated: March 20, 2026
