Kalshi seeks to block state regulatory enforcement in Nevada after losing injunction protection, plans to appeal during the process

ChainCatcher news, prediction market platform Kalshi lost its preliminary injunction to prevent enforcement actions by Nevada regulators on the eve of Thanksgiving, and is currently applying to the court to continue blocking state regulatory actions during the appeal period. The lifting of the injunction means that if Kalshi continues to operate in Nevada, it will face potential legal risks. Kalshi, similar to Polymarket, offers prediction contracts covering sports, politics, crypto, and traditional markets. The platform believes that obtaining a CFTC license allows it to operate in all 50 states in the US, but some state regulators—especially in Nevada—hold a different view.

After the injunction was lifted, Nevada regulators stated that they would not immediately initiate enforcement actions before the court decides whether to grant a stay of execution, but this does not equate to an administrative exemption issued by the court. The court has required state regulators to respond to Kalshi's application by December 8, and Kalshi may submit a reply by December 12.

The report points out that as Kalshi is engaged in regulatory disputes in multiple states, the platform's trading volume is growing rapidly, and its valuation has risen to $11 billions in a funding round led by Sequoia. Certuity estimates that by 2035, the prediction market size could reach $95.5 billions. Nevada regulators accuse Kalshi of "continuing illegal activities" without a state gambling license, and emphasize that a certain exchange and Robinhood have both agreed to suspend local operations during the appeal period. The exchange did not obtain renewed injunction protection, and its prediction market business has been suspended in Nevada.