Ninth Circuit denies Kalshi and Polymarket bid to halt Nevada, Washington state suits
The U.S. Ninth Circuit Court of Appeals denied requests from Kalshi and Polymarket to pause state enforcement lawsuits in Nevada and Washington, ruling May 23, 2026 that both companies must continue defending against state-level actions while the cases proceed. The platforms had sought to halt the state lawsuits and move them to federal court, arguing federal preemption under CFTC authority. The ruling leaves Nevada and Washington's enforcement actions proceeding in state court, meaning Kalshi and Polymarket face parallel legal pressure from state regulators alongside federal proceedings. The decision comes as Wisconsin separately clashes with the federal government over which level holds authority to regulate prediction markets including Kalshi.
Kalshi and Polymarket must now defend in four simultaneous state courts — Rhode Island, Wisconsin, Minnesota, and Nevada/Washington — while the CFTC's federal preemption case runs on a separate track. Any state loss forces immediate geoblocking and gives the four other investigating state AGs a ready enforcement template.
Joins Rhode Island, Wisconsin, and Minnesota as the fourth state-level front where Kalshi and Polymarket now face simultaneous enforcement, leaving both platforms to litigate in state courts across the country while the CFTC pursues federal preemption in parallel.