Kalshi loses temporary injunction protection in Nevada, compliance battle in the prediction market escalates.

[Bit推] Just after Thanksgiving, the prediction market platform Kalshi ran into trouble - its temporary injunction in Nevada has been lifted by the court. Now Kalshi is urgently applying, hoping the court can continue to shield it from state regulatory enforcement actions during the appeal period.

As soon as the ban is lifted, the risks will arise. If Kalshi continues to operate in Nevada, it may face legal consequences. This platform is quite similar to Polymarket, offering prediction contracts for sports, politics, cryptocurrencies, and traditional financial markets. Kalshi believes that having a CFTC license allows it to operate freely across all 50 states, but some states—especially Nevada—are not buying it at all.

Interestingly, although the Nevada regulators lifted the ban, they stated that they would not take immediate enforcement action until the court decides whether to grant a stay. However, this is not an official exemption order from the court, just a temporary observation. The timeline is quite tight: the state regulatory agency must respond to Kalshi's application by December 8, and Kalshi has a response window until December 12.

The key point is that although Kalshi is in a legal battle with multiple state regulators, the platform's trading volume has skyrocketed, and it recently achieved a valuation of $11 billion in funding led by Sequoia. Some institutions predict that by 2035, the entire prediction market scale could reach $95.5 billion.

Over in Nevada, they were quite blunt, directly accusing Kalshi of “continuing illegal activities” without a state gambling license, and specifically mentioned that Crypto.com and Robinhood both obediently suspended their local operations during the appeal period. Crypto.com’s prediction market operations have already stopped in Nevada because they did not obtain a renewal injunction for protection.