Kalshi and Polymarket have each filed emergency stay motions in Nevada federal court to allow the respective legislative bodies “adequate” time to consider “forthcoming” stay motions from both operators, as well as any responses from regulators.
The Nevada Gaming Control Board (NGCB) had previously filed civil enforcement actions against the prediction market operators during late January and early February 2026, with a temporary restraining order going into effect against Polymarket on January 31.
The NGCB filed a civil enforcement action against Kalshi in Carson City District Court on February 17, having also requested a declaration and injunction to prohibit the operator from offering “unlicensed wagering in violation of Nevada law.”
“Since filing its stay motion, Kalshi has continued to dramatically expand its business, rather than attempting to maintain any kind of status quo. Kalshi has massively increased its trading volumes, and has aggressively, and wrongly, marketed its sports bets as ‘100% legal’ in ‘all 50 States,’” the filing stated.
“As the district court found, every day that Kalshi operates in violation of Nevada law causes ‘substantial irreparable harms to State Defendants, the State of Nevada, the gaming industry in this state and the public interest.’ Kalshi’s continued operation harms the public because Kalshi offers sports betting but does not comply with ‘the same rigorous regulations and oversight as the licensed entities in this state.’”
Despite agreeing to temporarily forego civil enforcement action against Kalshi while its stay motion was still pending, the Attorney General’s Office believed the operator’s “own actions now compel state defendants to take action to stop Kalshi’s unlawful behavior.”
On February 23, Kalshi filed a lawsuit in the US District Court of Utah following what the operator described as an “intrusion” into the federal government’s authority to oversee prediction market platforms regulated by the Commodity Futures Trading Commission (CFTC).
Utah Governor Spencer Cox publicly criticized CFTC Chairman Michael Selig over the legality of sports-related prediction markets, rejecting the CFTC’s position that such markets fall under federal derivatives regulation.
The lawsuit also names Utah Attorney General Derek Brown and three fellow legislative leaders, as Kalshi is seeking both a preliminary and permanent injunction from the court, as well as declaratory relief.
The Netherlands Gambling Authority, or KSA, took a firm stance against Polymarket on February 17, threatening to fine the entity up to €840,000 ($992,000) if it does not stop its operations across the country
