BlockBeats News, March 20th, according to Cointelegraph, the U.S. Ninth Circuit Court of Appeals rejected the application of the prediction market platform Kalshi. The federal appeals court has allowed the Nevada regulatory agency to enforce a temporary restraining order against Kalshi, thereby preventing it from offering event contracts related to sports events.
Earlier, the Nevada Gaming Control Board sent a cease and desist letter to Kalshi in March, stating that its sports event contracts constituted unlicensed sports betting under Nevada law. Kalshi, on the other hand, argued that its event contracts fall under the exclusive federal jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) and that any restrictions on event contracts would cause “imminent harm” to the company. Lawyer Daniel Wallach stated that a temporary restraining order against Kalshi “appears imminent,” and since a TRO is not appealable under Nevada law, Kalshi will be forced to exit the Nevada market for at least 14 days—until the preliminary injunction hearing is held.
Currently, Kalshi and its competitors such as Polymarket, Crypto.com, Coinbase, and other prediction market platforms are facing legal challenges from regulatory agencies in multiple states, including Nevada, Connecticut, New York, and New Jersey. According to Dune Analytics data, the trading volume of prediction markets has been consistently rising recently, with weekly transaction volume stabilizing at over $2 billion, but this has also attracted more scrutiny from legislative bodies regarding insider trading and market manipulation issues.
