On Friday, a Nevada state judge extended a temporary ban on Kalshi, a prediction market provider, from offering sports-related contracts in the state. Judge Jason Woodbury granted the Nevada Gaming Control Board's request for a preliminary injunction against Kalshi, preventing the company from offering certain prediction markets until a broader court case can be resolved. The original temporary restraining order, issued on March 20, blocked Kalshi from offering sports, entertainment, and election-related bets. According to the judge, purchasing a contract on a baseball game through Kalshi is no different from 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. The board's chairman, Mike Dreitzer, expressed satisfaction with the ruling and reaffirmed the board's commitment to enforcing Nevada law to protect the state's gaming industry. State regulators have been attempting to block prediction market providers across the US, arguing that their sports-related products are essentially gambling products that should be regulated at the state level. However, companies like Kalshi argue that they are federally regulated and offer swaps, a type of derivative product, which exempts them from state regulation.
The Commodity Futures Trading Commission has taken a stance in support of 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.