In a ruling on Friday, a Nevada state judge extended a temporary ban on Kalshi's sports-related contracts, effectively blocking the company from offering certain prediction markets in the state. The decision, made by Judge Jason Woodbury in the First Judicial District Court, came after the Nevada Gaming Control Board requested a preliminary injunction against Kalshi.
The judge initially granted a temporary restraining order on March 20, which has now been extended by two weeks to allow for the refinement of the injunction's language. The original order prohibited Kalshi from offering sports, entertainment, and election-related bets.
According to Reuters, Judge Woodbury compared buying a contract on a baseball game through Kalshi to placing a bet on a state gaming platform, stating that the activities are 'indistinguishable.' He concluded that such activities constitute prohibited gaming for non-licensed entities. Kalshi spokespersons did not respond to requests for comment.
Mike Dreitzer, chairman of the Nevada Gaming Control Board, expressed satisfaction with the ruling, pledging to continue enforcing state law to protect the gaming industry. The board considers sports event contracts to be wagering activities that fall under local laws and require licensing. The ruling is part of a broader 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 contend that they offer federally regulated designated contract markets and swaps, making them exempt from state regulation.
The Commodity Futures Trading Commission has taken a stance in support of these companies, filing an amicus brief and suing several states, including Arizona, Illinois, and Connecticut, over regulatory disputes. A related hearing took place in a federal court in Arizona, where Kalshi sought to block state regulators from interfering with its products. Arizona Attorney General Kris Mayes had previously filed allegations of criminal charges against Kalshi.
District Judge Michael Liburdi heard arguments and is considering the motion.