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 judge determined that buying a contract on a baseball game through Kalshi was no different from placing a bet on a state-licensed gaming platform.
The ruling blocks Kalshi from offering sports, entertainment, and election-related bets in the state. The Nevada Gaming Control Board considers sports event contracts to be a form of wagering activity that requires licensing under local laws.
This move is part of a broader effort by state regulators to block prediction market providers, arguing that their sports-related products should be regulated at the state level. Kalshi and other providers argue that they are federally regulated and offer swaps, a type of derivative product, and are therefore not subject to state regulation. The case is ongoing, with the Commodity Futures Trading Commission supporting the providers and filing lawsuits against states that attempt to regulate them.