US court rejects Kalshi, Polymarket bid to halt state lawsuits

A U.S. federal appeals court has rejected a request by prediction market platforms Kalshi and Polymarket to halt lawsuits against them, Bloomberg reported. The U.S. Court of Appeals for the Ninth Circuit denied the companies' request to stop enforcement actions from Nevada and Washington, meaning the cases will now proceed in their respective state courts. The court noted that the platforms failed to prove they would suffer irreparable harm by defending themselves in state court or that the case falls under federal jurisdiction. The ruling means Kalshi and Polymarket, which have been attempting to expand and gain mainstream acceptance amid regulatory pressure, now face significant legal risks as they must directly confront legal actions from state governments.