Nevada judge extends temporary ban on Kalshi’s sports markets as regulatory fight intensifies
A Nevada judge on Friday extended a temporary ban on prediction-market provider Kalshi’s sports-related contracts, a move that keeps the company’s event-based products offline in the state while a broader regulatory fight plays out.
Judge Jason Woodbury of the First Judicial District Court in Carson City said he would grant the Nevada Gaming Control Board’s request for a preliminary injunction preventing Kalshi from offering certain prediction markets in Nevada until the regulator’s case is resolved. He also extended the temporary restraining order he first issued on March 20 by two weeks to allow time to finalize the injunction’s wording. The original order had blocked Kalshi from offering sports, entertainment and election-related contracts.
Woodbury told lawyers at the hearing that buying a Kalshi contract tied to a baseball game is “indistinguishable” from placing a bet on a state gaming platform, saying that the activity amounts to gaming and is therefore prohibited for any non-licensed operator in Nevada.
Kalshi and the Nevada Gaming Control Board did not respond to requests for comment, Reuters reported.
Why this matters
State gaming regulators across the U.S. have moved to block prediction-market products they view as gambling that should be licensed and regulated at the state level. Kalshi and other prediction-market firms counter that they operate as federally regulated designated contract markets offering swaps — a type of derivative — and therefore fall under Commodity Futures Trading Commission (CFTC) jurisdiction, not state authority.
The CFTC, led by Chair Mike Selig, has sided with Kalshi and similar firms. Earlier this year the agency filed an amicus brief in an appeals case and on Thursday joined the Department of Justice in suing Arizona, Illinois and Connecticut, arguing that the states are improperly encroaching on the CFTC’s regulatory role.
Parallel hearing in Arizona
The Nevada hearing came the same day a federal court in Arizona heard arguments in a related Kalshi motion. In that case Kalshi sought to block state regulators from curtailing its products; Arizona Attorney General Kris Mayes has previously filed an information alleging criminal charges against the company. District Judge Michael Liburdi heard arguments and is considering the motion.
What to watch next
The extended restraining order and the pending preliminary injunction keep Kalshi’s sports contracts halted in Nevada for the near term. The stakes extend beyond one company — the outcome could clarify whether prediction markets that resemble betting must obtain state gaming licenses, or whether such markets are governed exclusively as derivatives under federal law. The CFTC’s separate lawsuits against states and the unfolding litigation in multiple courts will likely determine the regulatory landscape for prediction markets—and may set precedent relevant to crypto derivatives and other event-based financial products.
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