US court sends Kalshi-Nevada dispute to state court, raising suspension risk

Prediction market platform Kalshi is facing a potential suspension of its operations in Nevada after a U.S. federal court remanded its dispute with the state to a state-level court, Decrypt reported. The decision opens a path for Nevada regulators to seek an injunction to halt the service. The federal court ruled that the claims made by the Nevada Gaming Control Board are based on state law and that the federal Commodity Exchange Act (CEA) does not fully preempt the matter, concluding that the federal court lacks jurisdiction. If Nevada secures an injunction, Kalshi may be forced to temporarily suspend its services in the state while the main lawsuit proceeds. Kalshi and other prediction market platforms like Polymarket have long argued that the Commodity Futures Trading Commission (CFTC) holds exclusive jurisdiction over designated contract markets and event contract platforms.