{"id":1667301,"date":"2026-03-03T19:25:00","date_gmt":"2026-03-04T00:25:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1667301"},"modified":"2026-03-03T19:25:00","modified_gmt":"2026-03-04T00:25:00","slug":"kalshi-polymarket-face-trading-halt-in-nevada-after-court-rulings","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/kalshi-polymarket-face-trading-halt-in-nevada-after-court-rulings\/1667301\/","title":{"rendered":"Kalshi, Polymarket Face Trading Halt In Nevada After Court Rulings"},"content":{"rendered":"

Kalshi, Polymarket Face Trading Halt In Nevada After Court Rulings<\/span><\/p>\n

\n

Authored by Zoltan Vardai via CoinTelegraph.com,<\/em><\/a><\/p>\n

Two US federal court rulings have increased the risk that Nevada regulators may seek to halt prediction-market trading in the state after a judge sent a dispute involving Polymarket\u2019s parent company Blockratize and Kalshi back to state court in two separate rulings.<\/p>\n

<\/a><\/p>\n

A federal judge rejected arguments that US regulation under the Commodity Exchange Act (CEA) and the Commodity Futures Trading Commission (CFTC) fully preempts state gaming laws for prediction markets,\u00a0according<\/a>\u00a0to a Monday order.<\/p>\n

The judge found that the CEA\u2019s savings clause does not completely displace state authority and that the companies had not shown a basis to block Nevada\u2019s action at this stage.<\/p>\n

The decision means the Nevada Gaming Control Board can continue pursuing its civil enforcement case in state court, where it could seek an injunction restricting Nevada residents from accessing event contracts offered by Polymarket or Kalshi.<\/p>\n

<\/a><\/p>\n

Court filing in the case of Nevada vs. prediction markets. Source: Courtlistener.com<\/em><\/p>\n

In response to the ruling, Polymarket\u2019s parent company submitted a motion to request a brief administrative stay of the court\u2019s remand order, the filing shows.<\/p>\n

The motion is a legal request seeking to freeze a court ruling or enforcement action seen as a short-term emergency measure.<\/p>\n

Prediction markets face mounting pressure after Nevada ruling: Lawyer<\/h2>\n

The Nevada decision comes as prediction markets face mounting pressure from state regulators, including Kalshi, which has been fighting Nevada\u2019s gaming regulator since 2025.<\/p>\n

On Tuesday, a federal judge also remanded Nevada\u2019s civil enforcement action against Kalshi back to state court, exposing Kalshi to an \u201cimminent temporary restraining order\u201d barring it from offering event contracts in the state, according to a court filing\u00a0seen<\/a>\u00a0by sports betting and gaming-focused lawyer Daniel Wallach.<\/p>\n

\u201cThe ruling could embolden other states to sue Kalshi in state court and seek injunctions to block event contracts, a strategy that has so far succeeded in every case brought,\u201d wrote Wallach, in a Tuesday X\u00a0post<\/a>.<\/p>\n

<\/a><\/p>\n

Source:\u00a0<\/em>Daniel Wallach<\/em><\/a><\/p>\n

Kalshi\u00a0sued the state<\/a>\u00a0of Nevada in March 2025 after receiving a cease-and-desist order to halt all sports-related betting markets within the state.<\/p>\n

However, in February, the US Court of Appeals for the Ninth Circuit\u00a0denied Kalshi\u2019s bid<\/a>\u00a0to stop Nevada\u2019s gaming regulator from taking action on its sports event contracts.<\/p>\n

Insider trading concerns add to scrutiny<\/h2>\n

The legal fight is unfolding as prediction markets draw scrutiny over information advantage and potential insider activity.<\/p>\n

Suspected insider\u00a0wallets netted $1.2 million<\/a>\u00a0by betting on the outcome of blockchain sleuth ZachXBT\u2019s investigation into Axiom, Cointelegraph reported on Friday.<\/p>\n

ZachXBT\u00a0released the much-anticipated investigation on Thursday<\/a>, alleging that Axiom employee Broox Bauer and others had been responsible for insider trading activity since early 2025.<\/p>\n

<\/a><\/p>\n

Top wallets betting on Axiom in ZachXBT\u2019s insider expos\u00e9. Source: Dune<\/em><\/p>\n

Insider trading concerns were first highlighted in January after a Polymarket\u00a0account profited $400,000<\/a>\u00a0after it placed a bet on a contract predicting that Venezuelan President Nicholas Maduro would be captured, wagering the funds just hours before US forces captured him during a military operation.<\/p>\n

Earlier in February,\u00a0Israeli authorities arrested<\/a>\u00a0and indicted two people suspected of using secret information related to Israel striking Iran for insider trading on Polymarket.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 03\/03\/2026 – 14:25<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/alshi-polymarket-face-trading-halt-nevada-after-court-rulings<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Kalshi, Polymarket Face Trading Halt In Nevada After Court Rulings Authored by Zoltan Vardai via CoinTelegraph.com, Two US federal court rulings have increased the risk…<\/p>\n","protected":false},"author":0,"featured_media":1667302,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1667301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1667301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1667301"}],"version-history":[{"count":1,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1667301\/revisions"}],"predecessor-version":[{"id":1667328,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1667301\/revisions\/1667328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1667302"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1667301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1667301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1667301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}