The U.S. Court of Appeals supports Nevada's ban, Kalshi is prohibited from offering sports prediction contracts

The Ninth Circuit Court of Appeals in the United States rejected the application of the prediction market platform Kalshi, allowing Nevada regulators to enforce a temporary restraining order prohibiting it from offering contracts related to sporting events.

Previously, the Nevada Gaming Control Board determined that Kalshi's related products constituted unlicensed sports gambling and issued a cease-and-desist order in March. Kalshi argued that its event contracts fall under the jurisdiction of the Commodity Futures Trading Commission.

Reports indicate that, since the relevant temporary restraining order is not appealable under state law, Kalshi expects to exit the Nevada market for at least 14 days until the preliminary injunction hearing is held. In addition, several prediction market platforms, including Polymarket, Crypto.com, and Coinbase, are also facing regulatory pressure in multiple states.