A federal appeals court has denied Kalshi‘s emergency request for a stay in its legal battle with Nevada regulators. This procedural setback allows the state to potentially file an enforcement action immediately, seeking a temporary order to halt the prediction-market platform’s operations. Kalshi may now turn to the U.S. Supreme Court’s emergency docket in a last-ditch effort to block enforcement while the broader dispute over federal versus state jurisdiction continues.
Federal appeals judges have rejected Kalshi’s emergency request to pause enforcement in its legal fight with Nevada regulators. This procedural setback could allow the state to move swiftly to shut down the prediction-market operator’s activities.
The Ninth Circuit Court of Appeals on Tuesday denied Kalshi’s motion for an administrative stay, according to posts on X by sports-betting and gaming attorney Daniel Wallach. The decision removes a temporary shield that would have blocked Nevada from pursuing civil enforcement while the court considers a broader request for relief.
With no stay in place, Nevada is now free to file a civil enforcement action in state court as early as Tuesday evening, Wallach said. A temporary restraining order is expected within days, which would likely force Kalshi to halt operations in the state while the dispute proceeds.
The case centers on whether Kalshi’s event-based contracts fall under federal commodities regulation, overseen by the Commodity Futures Trading Commission. Nevada regulators have rejected that view, asserting jurisdiction over products offered to residents within the state.
Wallach said Kalshi’s next move could be an emergency application to the U.S. Supreme Court, potentially as soon as Tuesday evening. The court’s emergency, or “shadow,” docket allows justices to issue short-term administrative stays to preserve the status quo while lower-court proceedings continue.
