Kalshi seeks to block state regulatory enforcement after losing injunction protection in Nevada, during which it will appeal

The prediction market platform Kalshi lost its preliminary injunction to block enforcement actions by Nevada regulators on the eve of Thanksgiving and is currently seeking to continue blocking state regulatory actions during the appeal process. The court's lifting of the injunction means that Kalshi faces potential legal risks if it continues to operate in Nevada. Similar to Polymarket, Kalshi offers prediction contracts covering sports, politics, crypto, and traditional markets, believing that obtaining a CFTC license allows it to operate in all 50 states, although some state regulators—especially in Nevada—disagree.

After the injunction was lifted, Nevada regulators stated that they would not immediately initiate enforcement actions until the court decides whether to grant a stay, 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.

Reports indicate that as Kalshi navigates regulatory challenges in multiple states, the platform's trading volume has rapidly increased, and its valuation has risen to $11 billion in a funding round led by Sequoia. Certuity expects that by 2035, the prediction market size could reach $95.5 billion. Nevada regulators have accused Kalshi of "continuing to engage in illegal activities" without a state gaming license and emphasized that both Crypto.com and Robinhood agreed to suspend local operations during their appeals. Crypto.com did not receive extended injunction protection, and its prediction market operations in Nevada have been suspended. (Decrypt)