On Friday, a Nevada state judge extended a temporary ban on Kalshi's sports-related contracts, granting the Nevada Gaming Control Board's request for a preliminary injunction. The judge, Jason Woodbury, stated that purchasing a contract on a baseball game through Kalshi was essentially the same as placing a bet on a state gaming platform.
He extended the temporary restraining order, initially granted on March 20, by two weeks to finalize the injunction's language. The original order had blocked Kalshi from offering sports, entertainment, and election-related bets. The judge deemed this activity as prohibited gaming for non-licensed entities.
Kalshi spokespeople did not respond to requests for comment. The Nevada Gaming Control Board's chairman, Mike Dreitzer, expressed satisfaction with the ruling, vowing to enforce Nevada law to protect the state's gaming industry.
The board considers sports event contracts as wagering activities that require licensing under local laws. State regulators have been attempting to block prediction market providers, arguing that their sports-related products resemble gambling products that should be regulated at the state level. In contrast, companies like Kalshi claim they are federally regulated and offer swap contracts, a type of derivative product, making them exempt from state regulation.
The Commodity Futures Trading Commission has supported these companies, filing an amicus brief and suing several states, including Arizona, Illinois, and Connecticut, for allegedly overstepping their regulatory role. A separate hearing took place in an Arizona federal court, where Kalshi sought to block state regulators from restricting its products, and Arizona Attorney General Kris Mayes had previously filed criminal charges against the company.