Kalshi, Polymarket face trading halt in Nevada after court ruling
The ruling adds new regulatory pressure as prediction markets also face scrutiny over information advantages and suspected insider activity tied to event-driven contracts.
A US federal court ruling has increased the risk that Nevada regulators may seek to halt prediction-market trading in the state after a judge sent a dispute involving Polymarket’s parent company Blockratize back to state court.
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, according to a Monday order.
The judge found that the CEA’s savings clause does not completely displace state authority and that the companies had not shown a basis to block Nevada’s action at this stage.