A Nevada court has ruled to block prediction market platform Kalshi from continuing operations in the state unless the company secures proper gambling licenses, following a Friday hearing in Carson City.
Judge Jason Woodbury announced his decision to grant a preliminary injunction requested by the Nevada Gaming Control Board, which will prevent the New York-based company from offering event-based betting contracts to Nevada residents without appropriate licensing.
Legal representatives for Kalshi contended that their contracts should be classified as “swaps” under federal oversight, specifically falling within the U.S. Commodity Futures Trading Commission’s regulatory authority – a stance the federal agency has supported in similar court cases.
However, Judge Woodbury rejected this argument, drawing comparisons between traditional sports betting and Kalshi’s platform operations. He noted that placing a $100 wager on a baseball game through a licensed state gaming operator was essentially identical to purchasing a sporting event contract through Kalshi’s service.
“No matter how you slice it, that conduct is indistinguishable,” Woodbury stated. “So I find based on the arguments that have been presented that it is a gaming activity that is prohibited for any non-licensee to engage in.”
The judge’s ruling extends a temporary restraining order he had previously issued on March 20, which blocked the company from offering sports, election, and entertainment-related contracts. The new injunction will remain in effect through April 17 while court officials work to establish the terms of a longer-lasting prohibition.
Kalshi representatives did not provide immediate responses to requests for comment regarding the court’s decision.
Nevada stands alone as the only state that has successfully obtained a court-enforced prohibition against Kalshi, positioning itself at the center of an expanding legal dispute over state authority to regulate prediction market operations.
Prediction market platforms like Kalshi enable users to place financial wagers on various event outcomes, including sports competitions and elections, through what the companies call “event contracts.”
The legal battle escalated Thursday when the CFTC filed lawsuits against three states, challenging their regulatory authority over companies like Kalshi. Arizona is among those states, having made headlines last month as the first to file criminal charges against Kalshi for allegedly operating an unlicensed gambling operation.
Meanwhile, a similar injunction in Massachusetts that would have blocked Kalshi’s sports event contracts remains suspended while the company pursues an appeal of that ruling.
