US Court Rules Against Polymarket & Kalshi In Nevada, Washington Lawsuit
A US appeals court denied requests from Polymarket and Kalshi to move gambling-related lawsuits from state to federal courts.Summary
The Ninth Circuit Court of Appeals has denied emergency motions from prediction market operators Polymarket and Kalshi, who sought to delay lower-court rulings and move their legal battles in Nevada and Washington to federal court. The companies argued that because they are regulated by the Commodity Futures Trading Commission (CFTC), federal law should preempt state gambling regulations. However, the court ruled that relying on federal preemption does not automatically establish a federal question sufficient to transfer the cases.
This ruling highlights the ongoing conflict between state gambling regulators and prediction markets. Nevada officials are concerned about the lack of state gaming licenses, while Washington state has accused Kalshi of offering illegal gambling products. While some courts, such as in New Jersey, have previously ruled in favor of Kalshi, other states like Maryland, Ohio, and Nevada have supported state gambling officials' authority to restrict these platforms.
(Source：CoinGape)