The U.S. Appeals Court has approved Nevada's injunction, prohibiting Kalshi from offering sports prediction contracts

BlockBeats News, March 20th. According to Cointelegraph, the United States Ninth Circuit Court of Appeals has rejected the application of the prediction market platform Kalshi. The federal appeals court has allowed the Nevada regulatory authority to enforce a temporary restraining order against Kalshi, thereby prohibiting it from offering contracts related to sporting events.

Earlier, in March, Nevada sent a cease-and-desist letter to Kalshi, stating that its sporting event contracts constituted unlicensed trading under Nevada law. Kalshi, on the other hand, argued that its event contracts fall within the exclusive federal jurisdiction of the Commodity Futures Trading Commission (CFTC) and that any restrictions on event contracts would cause the company "imminent harm." Lawyer Daniel Wallach stated that a temporary restraining order against Kalshi "seems imminent" and that since a TRO is not appealable under Nevada law, Kalshi will have to exit the Nevada market for at least 14 days—until the preliminary injunction hearing takes place.

Currently, Kalshi and its competitors such as Polymarket, Crypto.com, Coinbase, and other prediction market platforms are facing legal challenges from multiple state regulatory authorities, including those of Nevada, Connecticut, New York, and New Jersey. According to Dune Analytics data, the prediction market's recent trading volume has continued to rise, with weekly trading volume consistently exceeding $2 billion. However, this has also attracted more scrutiny from legislative bodies regarding insider trading and market manipulation issues.