On Friday, a state judge in Nevada extended a temporary ban on Kalshi, a prediction market provider, from offering sports-related contracts in the state. The decision, 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, prohibiting the company from offering certain prediction markets until a broader court case can be resolved.
The judge initially issued a temporary restraining order on March 20, which has now been extended by two weeks to finalize the language of the injunction. According to the judge, purchasing a contract for a baseball game on Kalshi is no different from placing a bet on a state gaming platform, making it a prohibited gaming activity for non-licensed entities. The Nevada Gaming Control Board considers sports event contracts to be a form of wagering activity that requires licensing under local laws.
The board's chairman, Mike Dreitzer, expressed satisfaction with the ruling and reiterated the board's commitment to enforcing Nevada law to protect the state's gaming industry. The case is part of a larger effort by state regulators to block prediction market providers, which they argue offer gambling products that should be subject to state regulation. In contrast, companies like Kalshi claim to be federally regulated designated contract markets offering swaps, a type of derivative product, and therefore exempt from state regulation. The Commodity Futures Trading Commission has sided with these companies, filing an amicus brief and suing several states, including Arizona, Illinois, and Connecticut, for allegedly infringing on its regulatory role.
The hearing coincided with another court case in Arizona, where Kalshi is seeking to block state regulators from restricting its products, and Arizona Attorney General Kris Mayes has filed criminal charges against the company.