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 ruling, made by Judge Jason Woodbury in the First Judicial District Court, effectively prohibits Kalshi from offering certain prediction markets until a broader court case can be resolved. The initial temporary restraining order, issued on March 20, had blocked Kalshi from offering sports, entertainment, and election-related bets.
According to the judge, purchasing a contract for a baseball game on Kalshi is essentially the same as placing a bet on a state gaming platform. The Nevada Gaming Control Board considers sports event contracts to be a form of wagering activity that requires licensing under local laws.
Kalshi and similar prediction market providers argue that they are federally regulated and offer swaps, a type of derivative product, which exempts them from state regulation. However, state regulators have moved to block these companies, citing concerns that their products constitute unregulated gambling. The Commodity Futures Trading Commission has taken a stance in support of these companies, filing an amicus brief and suing several states, including Arizona, Illinois, and Connecticut, for allegedly overstepping their regulatory authority.
A separate hearing took place in a federal court in Arizona, where Kalshi is seeking to block state regulators from interfering with its operations. The case is ongoing, with the court considering Kalshi's motion.