Nevada Moves to Restrict Polymarket, Kalshi in Blow to Crypto Prediction Markets
A federal judge cleared the way for Nevada regulators to pursue enforcement actions against Polymarket and Kalshi, dealing a potential blow to event-based cryptocurrency contracts. The March 3rd ruling rejected arguments that federal commodities law preempts state gaming regulations, remanding the case to Nevada courts.
The decision opens the door for Temporary Restraining Orders or Preliminary Injunctions that could severely limit – or eliminate – these platforms' operations in Nevada. Legal observers note the ruling preserves state regulatory authority despite the Commodity Exchange Act's provisions.
Separate cases against both platforms have been remanded to state court. Gaming attorney Daniel Wallach highlighted the development on social media, signaling increased scrutiny for prediction markets operating in the US.
