A Nevada district court judge has temporarily barred prediction market platform Kalshi from conducting business in the state, ruling that state regulators are reasonably likely to succeed in their legal challenge against the company. Carson City District Court Judge Jason Woodbury issued the temporary restraining order on Friday, granting a motion brought by the Nevada Gaming Control Board to halt Kalshi’s operations for 14 days. The order specifically prohibits Kalshi from offering sports, election, and entertainment-related event contracts within Nevada.
In his written order, Judge Woodbury determined that such contracts qualify as a “sports pool” under Nevada law, a category for which Kalshi holds no state license. The ruling follows a federal appeals court’s decision on Thursday to deny Kalshi’s emergency request to pause the state court proceeding, effectively clearing the way for Nevada regulators to act. A hearing on a motion for preliminary injunction has been scheduled for April 3.
Nevada Gaming Control Board Chair Mike Dreitzer stated that prediction markets facilitating unlicensed gambling are illegal in Nevada and that the board has a statutory duty to protect the public. Kalshi did not respond to requests for comment following the ruling. The company has maintained that its contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission, a federal agency that has supported prediction markets in similar disputes.
Judge Woodbury rejected Kalshi’s federal preemption argument, writing that the question is “nuanced and rapidly evolving” and that the current weight of legal authority does not support federal preemption in this context. The ruling adds to a growing list of legal challenges Kalshi faces across the United States. The company is currently involved in litigation — either as a defendant or as the initiating party — in multiple states over allegations that it operates without the required state licenses.
Earlier this year, a Massachusetts state judge banned Kalshi from offering sports event contracts, though that ban was subsequently lifted after the company filed an appeal. On Tuesday, Arizona filed criminal charges against Kalshi, with state Attorney General Kris Mayes alleging the company is running an illegal gambling operation. Kalshi CEO Tarek Mansour dismissed the Arizona charges as a “total overstep,” signaling the company intends to continue contesting regulatory actions at the state level.
Originally reported by CoinTelegraph.
