The US Court of Appeals for the Ninth Circuit denied stays for both Kalshi and Polymarket on May 22, allowing state-level gambling enforcement actions in Nevada and Washington to proceed. The court rejected both platforms’ claims that they would suffer irreparable harm if the cases proceeded, and found neither demonstrated a strong likelihood of success on appeal regarding their federal preemption arguments.
A multi-state legal pileup
Nevada filed a civil enforcement action against Kalshi in February 2026, arguing that the platform’s contracts, particularly those tied to sports outcomes, fall under state gaming rules rather than CFTC jurisdiction. That action followed a federal ruling on November 25, 2025, that gave Nevada the legal footing it needed to press forward.
Polymarket’s Nevada troubles started earlier, with the state taking action against the platform in January 2026. Polymarket had previously ceased operations due to regulatory issues in late 2025.
Washington’s Attorney General Nick Brown filed a lawsuit against Kalshi in late March 2026, centering the case on alleged violations of state anti-gambling laws.
