Kalshi and Polymarket Lose Gambling Appeals in Nevada and Washington

Ninth Circuit Denies Emergency Relief

A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit denied emergency motions filed by Kalshi and Polymarket on Tuesday, refusing to block state gambling enforcement cases moving forward in Nevada and Washington. Both platforms had sought to halt the lower court rulings pending appeal, but the court declined to grant the stay.

Path Forward for State Cases

With the emergency motions denied, gambling enforcement proceedings in both states will resume in the lower courts. Kalshi and Polymarket can continue pursuing their appeals on the merits, but the cases will advance on the original timeline set by state authorities. The rulings do not resolve the underlying legal questions about whether prediction markets constitute illegal gambling under state law, only whether the cases must be paused during the appeal process.

Why It Matters

For Traders

Regulatory headwinds in two major states increase near-term risk for both platforms; users in Nevada and Washington may face service disruptions or withdrawal restrictions.

For Investors

State-level gambling enforcement against prediction markets signals slower acceptance at the sub-federal level, potentially fragmenting the U.S. market rather than creating uniform rules.

For Builders

Prediction market protocols must prepare for patchwork state compliance; centralized front-ends face higher legal costs and may need to geo-fence U.S. traffic.