US Appeals Court Denies Kalshi, Polymarket Bid to Pause State Lawsuits
Summary
- The US Court of Appeals for the Ninth Circuit denied a request by prediction-market platforms Kalshi and Polymarket to pause litigation.
- The two platforms must continue responding to lawsuits brought by state governments in Nevada and Washington over their prediction-market services.
- The ruling could raise legal risk for the two platforms and affect the future regulatory direction of the US prediction-market industry.
Forecast Trend Report by Period
A US federal appeals court denied prediction-market platforms Kalshi and Polymarket a bid to pause litigation, leaving both companies to continue fighting lawsuits in Nevada and Washington.
Bloomberg reported on May 22 that the US Court of Appeals for the Ninth Circuit rejected Kalshi and Polymarket’s request to stay the proceedings. The cases were brought by state governments over the operation of prediction-market services.
The panel said the two platforms failed to show that they would suffer irreparable harm if the cases proceeded in state court. It also found unpersuasive their argument that the disputes belong in federal court.
Kalshi and Polymarket have been pushing to expand their prediction-market businesses even as US regulators step up scrutiny. Legal clashes with regulators have continued, particularly over contracts tied to political and economic events.
The ruling is drawing attention because it could raise legal risk for both platforms. Outcomes in state court could also affect the direction of regulation for the US prediction-market industry.
