Federal Judge Sends Kalshi and Polymarket Disputes Back to State Court

A federal judge has decided to remand the legal disputes involving prediction markets Kalshi and Polymarket back to Nevada state court. According to NS3.AI, this move allows state regulators to pursue injunctions against these platforms. The ruling challenges the platforms' assertions of exclusive federal jurisdiction, increasing the likelihood of trading halts in Nevada. This decision could encourage other states to take similar actions, complicating compliance efforts and potentially fragmenting liquidity within the expanding prediction market sector.