Nevada attorney opposes Kalshi bid to delay Ninth Circuit rehearing
Neva is opposing Kalshi's request to delay a rehearing before the U.S. Court of Appeals for the Ninth Circuit. The state argues that proposed CFTC event-contract rules do not change the underlying statutory dispute. Kalshi sought the pause while the Commodity Futures Trading Commission pursues related rulemaking. The case remains before the federal appeals court. Nevada is pushing to keep the appellate proceedings on track rather than pausing for the regulatory process.
Kalshi is now fighting on two federal fronts while state courts move faster. The platform lost preemption in the Sixth Circuit for Ohio and Tennessee, faces a New York suit against Polymarket on the same theory, and must defend its Ninth Circuit position without the timeout it requested. Each loss becomes precedent the next state copies.
The CFTC's pending event-contract rules are months from finalization after White House review, so Kalshi cannot count on federal paperwork to outrun state courtrooms. Legal spend compounds across parallel defenses, and traders hold positions whose legality shifts with state borders. The first platform to lose another major circuit deepens the template every attorney general races to replicate.
This is the latest state-level preemption challenge against a CFTC-registered platform, joining active Nevada litigation alongside Kalshi's losses in the Sixth Circuit's Ohio and Tennessee ruling and Polymarket's New York fight.