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Kalshi’s fight to keep its sports contracts alive in Nevada has taken another hit after the Ninth Circuit refused to grant a stay.
The appeals court’s decision, handed down Thursday, leaves the prediction market exposed to state enforcement and without federal protection. The ruling means Nevada’s First Judicial Court in Carson City can move forward with the case brought by the Gaming Control Board last month.
Kalshi had argued the matter belonged in federal court, but the US District Court in Nevada disagreed and sent it back to the state level. Hoping to pause enforcement while its appeal was pending, Kalshi asked the Ninth Circuit for a stay. That request has now been denied, according to an In Game report.
Supreme Court might be Kalshi’s next destination
The battle over Kalshi’s sports contracts in Nevada may not end at the Ninth Circuit. With the appeals court refusing to grant a stay, the company now faces the likelihood of a temporary restraining order from the First Judicial Court of Carson City.
The NGCB filed for that order last month, asking the court to block Kalshi for 14 days. Such an order can be granted without requiring a response, and a similar move was already taken against Polymarket. If no higher court steps in, Kalshi’s contracts could be banned in the state.
That leaves the Supreme Court’s emergency docket as Kalshi’s remaining option. The company could appeal to Justice Elena Kagan, who oversees matters from the Ninth Circuit. She could act alone or refer the case to the full court.
If Kalshi petitions for a stay, the NGCB would respond, Kalshi would reply, and the court would then issue a short order either granting or denying the request.
Kalshi was already battling in Nevada, where it sued in March 2025 to block the enforcement of gambling laws.
The company briefly won an injunction, but the judge later dissolved it, ruling that sports contracts were not covered by the federal Commodity Exchange Act. Kalshi appealed that decision to the Ninth Circuit, yet the court has not stopped Nevada from acting while the appeal continues.
Kalshi hit with criminal charges in Arizona
It’s been a rough couple of weeks for Kalshi, with Arizona recently deciding to file criminal charges against the prediction market. The state accused the operator of running an illegal gambling operation with election betting at the center.
That move set Arizona apart, as no other state had taken the dispute into criminal territory before. If Arizona’s approach holds up, it’s not hard to imagine other states following the same path. That would put platforms like Kalshi in a difficult position, either adapt to a patchwork of local laws or pull back entirely in certain markets.
Source: In Game
