US Appeals Court Rejects Kalshi, Polymarket Bid to Halt State Lawsuits
Summary
- The US Court of Appeals for the Ninth Circuit rejected Kalshi and Polymarket's request to pause litigation, leaving legal risks for prediction-market platforms in place.
- The court said it did not accept the platforms' claims that the state-court cases would cause irreparable harm or that the disputes belong in federal court.
- The ruling could affect the direction of regulation for the prediction-market industry in the US, depending on how the Nevada and Washington cases are decided.
Forecast Trend Report by Period
A US federal appeals court rejected requests by prediction-market platforms Kalshi and Polymarket to pause ongoing litigation, requiring both companies to continue fighting cases in Nevada and Washington.
Bloomberg reported on May 22 that the US Court of Appeals for the Ninth Circuit denied the stay sought by Kalshi and Polymarket. The cases were brought by state authorities over the operation of their prediction-market services.
The panel said the two platforms failed to show that proceeding in state court would cause irreparable harm. It also found unpersuasive their argument that the disputes belong in federal court.
Kalshi and Polymarket have recently sought to expand their prediction-market businesses even as US regulators move toward tighter oversight. Legal clashes with regulators have continued, particularly over contracts tied to political and economic events.
The ruling has drawn attention for its potential to expand legal risks for both platforms. Decisions in the Nevada and Washington courts could also affect the direction of regulation for the US prediction-market industry.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
