On Friday, a Nevada state judge extended a temporary ban on sports-related contracts offered by prediction market provider Kalshi. Judge Jason Woodbury granted the Nevada Gaming Control Board's request for a preliminary injunction, prohibiting Kalshi from offering certain prediction markets until a broader court case is resolved. The initial temporary restraining order, issued on March 20, blocked Kalshi from offering sports, entertainment, and election-related bets. According to the judge, purchasing a contract for a baseball game on Kalshi is comparable to placing a bet on a state gaming platform.
The Nevada Gaming Control Board considers sports event contracts to be wagering activities that require licensing under local laws. Kalshi and other prediction market providers argue that they offer federally regulated designated contract markets and swaps, making them exempt from state regulation. However, state regulators have moved to block these providers, citing concerns that their products resemble gambling products. 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.