The U.S. court ruling increases the risk of Kalshi and Polymarket being suspended from trading in Nevada.

According to Decrypt, a U.S. federal judge has remanded a lawsuit filed by Nevada against Kalshi and Polymarket to the state court, allowing regulators to seek a preliminary injunction. The court ruled that commodity exchange law does not fully supersede Nevada's gaming law claims, and therefore the federal court lacked subject-matter jurisdiction in the case. If Nevada obtains an injunction, Kalshi could be temporarily prohibited from offering event contracts to users in the state. Kalshi is considering an emergency appeal, while Polymarket has sought a stay of remand while preparing an appeal. Legal analysts point out that this ruling is a major setback for Kalshi, potentially forcing it to withdraw from a state market for the first time due to a court ruling, and could trigger similar actions in other states. If Kalshi is required to implement a territorial blockade in Nevada, it will weaken its argument in other lawsuits that territorial blockades would cause "irreparable harm."