The risk of a Nevada ban on transactions between Kalshi and Polymarket is rising.

a federal judge has remanded the case filed by Nevada against Kalshi and Polymarket's parent company Blockratize to state court, ruling that the relevant claims are mainly based on state law and that the Commodity Exchange Act does not completely preempt state law claims. This move means that Nevada regulators can continue to seek a temporary injunction in state court, increasing the risk that Kalshi and Polymarket will be restricted from offering event contract trading locally. The report states that Kalshi is evaluating emergency appeal options, and Polymarket has applied for a stay of enforcement. Previously, Nevada accused that the relevant event contracts require licensing under state law and filed a lawsuit.