The risk of a Nevada ban on transactions involving Kalshi and Polymarket is rising.

A federal judge has remanded the Nevada case against Kalshi and Polymarket's parent company, Blockratize, to state court, ruling that the claims are primarily based on state law and that the Commodity Exchange Act does not completely exclude these claims. This means Nevada regulators can continue to seek a temporary injunction in state court, increasing the risk that Kalshi and Polymarket may be restricted from offering event contract trading in the state. The report states that Kalshi is evaluating an emergency appeal option, while Polymarket has applied for a stay of execution. Previously, Nevada had alleged that the event contracts in question required a license under state law and filed a lawsuit. (Decrypt)