A Nevada judge has extended a ban preventing Kalshi from offering event-based contracts in the state, ruling the products constitute unlicensed gambling under Nevada law.
Judge Jason Woodbury said at a Carson City hearing that he will grant a preliminary injunction requested by the Nevada Gaming Control Board, barring the company from allowing residents to trade on outcomes such as sports, elections and entertainment events without a gaming license. The ruling extends a temporary restraining order issued on March 20 and will remain in effect through April 17 while the court considers longer-term restrictions.
New York–based Kalshi has argued its contracts are financial derivatives—specifically “swaps”—that fall under the exclusive oversight of the Commodity Futures Trading Commission (CFTC). Woodbury rejected that argument, saying buying a Kalshi contract tied to a game outcome is functionally indistinguishable from placing a wager through a licensed sportsbook and therefore qualifies as gaming under state law.
The decision marks the first time a state has secured a court-enforced ban currently in effect against Kalshi. An appeals court recently denied Kalshi’s request to block Nevada’s enforcement action. Separately, Utah lawmakers passed a bill that classifies proposition-style bets on in-game events as gambling, aiming to block similar offerings by Kalshi and Polymarket in that state.
The CFTC has asserted authority over prediction markets and said it is prepared to defend its jurisdiction in court against challenges from states or other regulators. CFTC Chairman Michael Selig, speaking at an industry conference, described prediction markets as potential “truth machines,” arguing that markets where participants put money behind their views can produce more transparent and reliable signals about future events than traditional opinion polls.
