In a recent ruling, a Nevada state judge extended a temporary ban on Kalshi's sports-related prediction contracts, effectively prohibiting the company from offering such 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 finalize the language of the injunction. According to the judge, purchasing a contract for a baseball game on Kalshi is equivalent to placing a bet on a state gaming platform, thus deeming it a prohibited gaming activity for non-licensed entities.
The Nevada Gaming Control Board views sports event contracts as wagering activities that require licensing under local laws. This development is part of a broader effort by state regulators to block prediction market providers, arguing that their sports-related products should be subject to state regulation. In contrast, companies like Kalshi claim to be federally regulated and exempt from state oversight. The Commodity Futures Trading Commission supports this stance, recently filing a lawsuit against Arizona, Illinois, and Connecticut, asserting its role as the primary regulator.
A separate hearing took place in a federal court in Arizona, where Kalshi sought to prevent state regulators from blocking its products, while Arizona's Attorney General has filed allegations of criminal charges against the company.