Kalshi Faces Nevada Restraining Order as Federal Appeals Court Denies Administrative Stay

Prediction market platform Kalshi is bracing for a temporary restraining order in Nevada after a Ninth Circuit Court of Appeals panel declined to grant an administrative stay on Thursday, sending the case back to state court.

The legal battle began when the Nevada Gaming Control Board issued a cease-and-desist order against Kalshi in March 2025, directing the company to halt sports-related prediction market contracts. Authorities later sought to extend that restriction to cover all of Kalshi's event contracts. After Kalshi attempted to move proceedings to federal court, the denial of its administrative stay motion now clears the path for state court intervention.

In its March 13 appeal, Kalshi argued it faced imminent harm, warning that continued state court proceedings would compromise its appellate rights across multiple ongoing legal actions. The company expressed concern about simultaneously defending its position in as many as four different venues — including Nevada state and federal courts and two separate appeals court cases — creating a serious risk of conflicting rulings. One scenario the company raised involved a state court finding that federal commodity law does not preempt Nevada gambling regulations, while a federal appellate court reaches the opposite conclusion.

Gaming attorney Dan Wallach noted on social media that a restraining order could effectively remove Kalshi from Nevada for a minimum of two weeks while a preliminary injunction hearing is scheduled. That order could arrive within days.

Kalshi's regulatory challenges extend well beyond Nevada. The platform, along with other prediction market providers, is currently facing resistance across more than a dozen states, with regulators asserting authority over sports-related betting products. The Commodity Futures Trading Commission maintains it holds exclusive federal jurisdiction over these markets and has filed an amicus brief supporting that stance. The CFTC also recently formalized a memorandum of understanding with Major League Baseball, coinciding with MLB's separately announced partnership with rival platform Polymarket.