On Friday, a Nevada state judge extended a temporary ban on Kalshi's sports-related prediction market contracts. Judge Jason Woodbury, presiding over the First Judicial District Court, decided to grant the Nevada Gaming Control Board's request for a preliminary injunction against Kalshi. This injunction will prevent the company from offering certain prediction markets until a broader court case can be resolved. The temporary restraining order, initially granted on March 20, has been extended by two weeks to finalize the language of the injunction.
The original order 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 equivalent to placing a bet on a state gaming platform. The judge stated that this activity is a form of gaming that is prohibited for non-licensed entities. Kalshi spokespeople did not respond to requests for comment.
Mike Dreitzer, chairman of the Nevada Gaming Control Board, expressed satisfaction with the ruling and pledged to continue enforcing Nevada law to protect the state's gaming industry. The board considers sports event contracts to be a form of wagering that requires licensing under local laws. The ruling is part of a larger effort by state regulators to block prediction market providers, arguing that their sports-related products are essentially gambling products that should be regulated at the state level. Kalshi and other providers claim that they are federally regulated and offer swaps, a type of derivative product, and therefore are not subject to state regulation.
The Commodity Futures Trading Commission has taken a stance supporting these companies, filing an amicus brief and suing several states, including Arizona, Illinois, and Connecticut, for allegedly infringing on its regulatory role. A separate hearing took place in a federal court in Arizona, where Kalshi sought to block state regulators from restricting its operations. Arizona Attorney General Kris Mayes had previously filed criminal charges against Kalshi.