Nevada extends Kalshi ban; Groups back regulators in dispute
A Nevada state judge has extended the ban imposed on prediction market operator Kalshi, reinforcing the state’s position that sports-based contracts offered by the platform fall within the scope of gambling regulation.
Based on reports, Judge Jason Woodbury of the First Judicial District Court in Carson City confirmed he would grant a preliminary injunction preventing Kalshi from offering contracts tied to sports, entertainment, and elections without a state gaming licence. The decision extends a temporary restraining order first issued in March and keeps the platform barred from operating in Nevada while the court finalises the injunction’s terms.
Central to the ruling was the judge’s conclusion that purchasing contracts on sporting outcomes closely mirrors placing bets through licensed operators. Local reports said that the court’s interpretation challenges Kalshi’s argument that its offerings qualify as federally regulated “swaps” under the oversight of the Commodity Futures Trading Commission (CFTC). While the CFTC has supported that classification in parallel litigation, the Nevada court found the distinction unconvincing.
Commenting on the development, U.S. Gaming Law and Sports Betting Attorney Daniel Wallach described the ruling as a significant milestone for state regulators. “Big win for Nevada, which now joins Massachusetts as the first two states to secure a preliminary injunction vs Kalshi,” Wallach wrote on LinkedIn.
Legal fragmentation deepens across US jurisdictions
The outcome leaves Nevada as one of the few states with an active, court-enforced prohibition against Kalshi. However, the broader legal landscape remains fragmented. Courts in Tennessee and New Jersey have recently issued decisions favourable to the company, while rulings in Ohio, Maryland and now Nevada have gone the other way. A case in Massachusetts remains on hold pending appeal.
Simultaneously, legal proceedings are unfolding in Arizona, where Kalshi faces criminal charges for allegedly accepting unlicensed wagers. A federal judge has consolidated related cases involving both Kalshi and the CFTC.
At the federal level, the CFTC has filed lawsuits against multiple states to assert jurisdiction over prediction markets, arguing that inconsistent state-level enforcement risks regulatory fragmentation.
Nevada groups back regulators in Kalshi dispute
Meanwhile, Nevada-based problem gambling organisations have entered the legal debate surrounding prediction platforms. They filed briefs in support of state regulators and urged courts to treat such services as gambling operations subject to established safeguards.
According to reports, the Nevada Council on Problem Gambling and the Dr Robert Hunter International Problem Gambling Center submitted amicus briefs to the Ninth Circuit Court of Appeals. They argued that prediction markets function in a manner comparable to traditional betting, particularly when applied to sporting events. They highlighted concerns about accessibility, transaction speed, and product design, all of which they said can increase exposure to risk.
The organisations also point to the scale of advertising by prediction platforms, noting that they account for a substantial share of digital sports betting promotions in the U.S. Data referenced in the filings underscores the rapid growth of the sector. Trading volumes on sports-related contracts have reached levels comparable to, and in some cases exceeding, traditional betting markets.
Be part of the action! Join the world’s biggest iGaming community with SiGMA’s Top 10 News countdown. Subscribe HERE for weekly updates, insider insights, and exclusive subscriber-only offers.
