State courts continue to advance, and Kalshi and Polymarket have temporarily lost this round of jurisdiction disputes. The path to compliance for prediction markets is still long.

Mars Finance News, May 22 — According to Bloomberg, the Ninth Circuit Court of Appeals in the United States ruled that Kalshi and Polymarket cannot prevent enforcement lawsuits against prediction market platforms from proceeding in state courts in Nevada and Washington. The court stated that Kalshi and Polymarket failed to prove that responding in state courts would cause "irreparable harm," nor did they demonstrate a higher likelihood of success regarding their claim that federal courts have jurisdiction, and therefore, their request to stay the related state-level lawsuits was denied.