Kalshi, Polymarket face trading halt in Nevada after court rulings

The two separate rulings add new regulatory pressure as prediction markets also face scrutiny over information advantages and suspected insider activity tied to event-driven contracts.

Two US federal court rulings have increased the risk that Nevada regulators may seek to halt prediction-market trading in the state after a judge sent a dispute involving Polymarket’s parent company Blockratize and Kalshi back to state court in two separate rulings.

A federal judge rejected arguments that US regulation under the Commodity Exchange Act (CEA) and the Commodity Futures Trading Commission (CFTC) fully preempts state gaming laws for prediction markets, according to a Monday order.

The judge found that the CEA’s savings clause does not completely displace state authority and that the companies had not shown a basis to block Nevada’s action at this stage.

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