U.S. Federal Appeals Court Rejects Kalshi’s and Polymarket’s Motion to Stay State-Level Litigation

According to Bloomberg, the U.S. Court of Appeals ruled that enforcement lawsuits filed by Nevada and Washington State against prediction market platforms Kalshi and Polymarket may proceed in state courts, and denied the two companies’ request to pause the related cases during the appeal. The court stated that Kalshi and Polymarket failed to demonstrate that the state-court proceedings would cause irreparable harm, nor did they show a substantial likelihood of success on their claim that federal-question jurisdiction applies. This ruling concerns Nevada’s enforcement actions against both Kalshi and Polymarket, as well as Washington State’s case against Kalshi.