On Friday, a state judge in Nevada extended a temporary ban on Kalshi, a prediction market provider, from offering sports-related contracts in the state. Judge Jason Woodbury of the First Judicial District Court granted the Nevada Gaming Control Board's request for a preliminary injunction against Kalshi, prohibiting the company from offering certain prediction markets until a broader court case can be resolved.
The judge initially issued a temporary restraining order on March 20, which has now been extended by two weeks to finalize the injunction's language. The original order blocked Kalshi from offering sports, entertainment, and election-related bets. According to the judge, purchasing a contract for a baseball game on Kalshi is 'indistinguishable' from placing a bet on a state gaming platform. The judge stated that this constitutes a prohibited gaming activity for non-licensed entities.
Kalshi's representatives did not respond to requests for comment. Mike Dreitzer, chairman of the Nevada Gaming Control Board, expressed satisfaction with the ruling and reiterated the board's commitment to enforcing state law to protect the gaming industry. The board considers sports event contracts to be wagering activities that require licensing under local laws. The decision reflects Nevada's public policy of licensing, controlling, and assisting the gaming industry to safeguard public health, safety, and welfare.
State regulators have been working 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. Kalshi and other providers argue that they are federally regulated and offer swaps, a type of derivative product, making them exempt from 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 related hearing took place in a federal court in Arizona, where Kalshi sought to block state regulators from restricting its products.
Arizona Attorney General Kris Mayes had previously filed charges against Kalshi. The court is currently considering the motion.