On Friday, a Nevada state judge extended a temporary ban on Kalshi's sports-related prediction contracts, granting the Nevada Gaming Control Board's request for a preliminary injunction. The ruling, made by Judge Jason Woodbury in the First Judicial District Court, effectively prohibits Kalshi from offering certain prediction markets until a broader court case can be 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 virtually indistinguishable 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. Mike Dreitzer, the chairman of the board, expressed satisfaction with the ruling, stating that the board will continue to enforce Nevada law to protect the state's gaming industry. The case is part of a larger dispute between state regulators and prediction market providers, with the latter arguing that they are federally regulated and not subject to state oversight.
The Commodity Futures Trading Commission has taken a stance in support of the prediction market providers, filing an amicus brief and suing several states, including Arizona, Illinois, and Connecticut, for allegedly overstepping their authority.