The risk of trading bans in Nevada for Kalshi and Polymarket is rising

A federal judge has remanded the case against Kalshi and Polymarket's parent company Blockratize back to state court in Nevada, stating that the relevant claims are primarily based on state law, and the Commodity Exchange Act does not completely preempt state law claims.

This move means that 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 locally. Reports indicate that Kalshi is evaluating emergency appeal options, while Polymarket has applied for a stay of enforcement. Previously, Nevada authorities alleged that the relevant event contracts required licensing and litigation under state law.