Prediction Markets Risk Trading Block in Nevada After Court Ruling

A US federal court rejected arguments that federal law (CEA/CFTC) completely preempts state gaming laws for prediction markets, allowing Nevada regulators to continue their civil enforcement case against Polymarket's parent company, Blockratize, in state court. This decision means Nevada could seek an injunction to restrict Nevada residents from accessing event contracts offered by Polymarket or Kalshi. Separately, a federal judge also remanded Nevada's action against Kalshi back to state court, exposing Kalshi to a potential temporary restraining order. Legal experts suggest this ruling could encourage other states to pursue similar injunctions. The legal pressure coincides with increased scrutiny on prediction markets regarding insider trading, following incidents where wallets profited significantly from betting on outcomes like the results of a ZachXBT investigation and geopolitical events.

(Source：Cointelegraph)