A federal judge ruled that the Commodity Exchange Act does not preempt Nevada’s gaming laws, allowing state regulators to seek a temporary injunction that could restrict Kalshi’s in-state event contract operations.
A U.S. federal judge has remanded Nevada’s lawsuit against Kalshi and Polymarket’s parent company Blockratize to state court, determining that the Commodity Exchange Act does not override Nevada’s gaming laws. The decision allows state regulators to pursue a temporary injunction aimed at limiting or halting event contract trading within Nevada. The ruling increases potential operational restrictions for Kalshi at the state level, as the company considers an appeal and Polymarket seeks to pause proceedings.