A district court judge in Nevada has issued a temporary restraining order Friday that stops prediction market company Kalshi from conducting business in the state without obtaining proper gaming licenses.
Carson City District Court Judge Jason Woodbury granted the Nevada Gaming Control Board’s request to halt Kalshi’s operations, which allow state residents to place financial wagers on sporting events, political elections, and entertainment outcomes through event contracts.
The court action caps off several months of legal disputes as Kalshi fought to avoid becoming the second state where courts have banned its operations, highlighting a growing nationwide conflict over state gaming authorities’ power to regulate prediction market companies.
“Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public,” Nevada Gaming Control Board Chair Mike Dreitzer said in a statement.
Kalshi declined to comment.
Companies like Kalshi operate prediction markets where users can place financial wagers on various event outcomes including sports and elections through trading what they call “events contracts.”
The Nevada Gaming Control Board filed suit against Kalshi last month, claiming the company engaged in wagering activities under state law by providing sports and other event contracts to users on its platform, requiring proper licensing.
Kalshi contended these contracts fall under the exclusive authority of the Commodity Futures Trading Commission. The federal agency has supported prediction markets during the Trump administration in their legal battles against state claims that they operate as unlicensed gambling businesses.
However, Judge Woodbury dismissed this defense and ruled the board maintains authority to pursue legal action against the company. The judge determined that by providing event contracts for college basketball, professional football games, and elections, Kalshi operated a “sports pool” according to Nevada gaming regulations.
Woodbury has set an April 3 hearing to determine whether to grant a longer-term preliminary injunction.
This decision follows a Massachusetts judge’s ruling last month that banned Kalshi from offering sports event contracts in that state, though the ruling is currently suspended pending Kalshi’s appeal.
Arizona became the first state Tuesday to file criminal charges against Kalshi for operating an illegal gambling operation, while the company has filed lawsuits to prevent other states from taking enforcement measures.
