PANews reported on May 22 that, according to Bloomberg, the U.S. Ninth Circuit Court of Appeals rejected Kalshi and Polymarket's request to suspend enforcement lawsuits in Nevada and Washington against their prediction market operations. The cases will continue to be heard in state courts. Three federal judges held that the two companies failed to demonstrate that responding to the lawsuits in state courts would cause irreparable harm, nor did they prove that the federal courts had "federal jurisdiction" over the cases. The court noted that the states' accusations of unlicensed operation and alleged illegal gambling are primarily based on state law, and Kalshi and Polymarket's claim of priority of federal law is merely a defense and cannot constitute a basis for federal jurisdiction. The court emphasized that federalism and the principle of comity support allowing states to enforce their gambling regulations in their own state courts.