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HTX Community Spring Creation ContestHTX DAO Staking LaunchCheck In to Win a 20g Gold BarA U.S. appeals court has permitted the state of Nevada to pursue legal action against predictionmarket platform

A U.S. appeals court has permitted the state of Nevada to pursue legal action against predictionmarket platform Kalshi. The Ninth Circuit Court of Appeals denied Kalshi’s request to block a possible temporary restraining order (TRO). If approved, Kalshi may have to stop operating in the state for a short time, likely around two weeks, until the next hearing.

What this Case carries

The problem began in March 2025 when Kalshi received a cease-and-desist order from the Nevada Gaming Control Board. Because it believes that sports-related prediction contracts violate state gambling laws, the regulator asked Kalshi to cease providing them. Kalshi countered that federalregulations, not state regulations, govern its products.

With the court decision, Nevada may now issue a temporary restraining order. Legal experts say that this order could come very soon, and Kalshi could be forced to stop operating in Nevada, and the ban could last at least two weeks.

Kalshi warned that it would face serious harm if the court did not intervene. The firm says that it could face multiple legal cases at the same time, and different courts might give conflicting decisions. The Commodity Futures Trading Commission (CFTC) supports Kalshi’s view. The CFTC says it has authority over prediction markets, while states like Nevada believe they also have control, especially for sports-related products.

The court’s decision represents a setback for Kalshi and provides an opportunity for Nevada to take more robust action. The next few days will be important, as a temporary ban on Kalshi in Nevada could be enforced soon. More updates are expected soon as the state court moves forward with the case.

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