On Friday, a Nevada state judge extended a temporary ban on Kalshi, a prediction market provider, offering sports-related contracts within the state. The ruling, made by Judge Jason Woodbury in the First Judicial District Court, also granted the Nevada Gaming Control Board's request for a preliminary injunction against Kalshi.

This decision prevents Kalshi from offering certain prediction markets until a broader case with the state gaming regulator is resolved. The original temporary restraining order, issued on March 20, blocked Kalshi from offering bets related to sports, entertainment, and elections. According to Judge Woodbury, purchasing a contract for a baseball game on Kalshi is virtually indistinguishable from placing a bet on a state-licensed gaming platform. The judge stated that this activity constitutes prohibited gaming for non-licensed entities.

Kalshi spokespersons did not respond to requests for comment. Mike Dreitzer, chairman of the Nevada Gaming Control Board, expressed satisfaction with the ruling, stating that the board will continue to enforce Nevada law to protect the state's gaming industry. The board considers sports event contracts to be wagering activities under local laws, requiring licensing.

The decision reflects Nevada's public policy, which emphasizes the importance of a regulated gaming industry to the state's economy and general welfare. State regulators across the U.S. have been moving to block prediction market providers, arguing that their sports-related products are essentially gambling products that should be subject to state regulation. In contrast, companies like Kalshi argue that they offer federally regulated designated contract markets, providing swaps as a type of derivative product, and are therefore not subject to state regulators.

The Commodity Futures Trading Commission has taken a stance supporting these companies, filing an amicus brief in an appeals court case and suing several states, including Arizona, Illinois, and Connecticut, for allegedly infringing on its regulatory role. A related hearing took place in a federal court in Arizona, where Kalshi sought to block state regulators from restricting its products. Arizona Attorney General Kris Mayes had previously filed allegations of criminal charges against Kalshi.

The court is currently considering the motion.