Nevada Judge Temporarily Bars Kalshi From Operating in State

A Nevada judge has issued a 14-day temporary restraining order blocking prediction market operator Kalshi from doing business in the state, finding Nevada regulators are likely to prevail in a dispute over whether Kalshi’s event contracts violate state gambling laws. Carson City District Court Judge Jason Woodbury granted the order on a motion from the Nevada Gaming Control Board. The board had asked the court to halt Kalshi’s operations while the litigation proceeds. Nevada Gaming Control Board Chair Mike Dreitzer said, ‘Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public.’ The court action followed a federal appeals court’s refusal to grant Kalshi an emergency stay of a federal proceeding, which allowed Nevada regulators to move forward. In his order, Judge Woodbury barred Kalshi from offering sports, election and entertainment-related event contracts in Nevada, saying the early record treats those contracts as a ‘sports pool’ under Nevada law and therefore subject to state licensing requirements Kalshi does not hold. Nevada sued Kalshi last month, asserting the company must be licensed by the state to offer sports event contracts. Kalshi has argued that its products fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC); the CFTC has supported some prediction markets facing state challenges. Judge Woodbury rejected Kalshi’s federal preemption argument, calling the question ‘nuanced and rapidly evolving’ but concluding existing authority leans against preemption here. A hearing on a preliminary injunction is scheduled for April 3. Kalshi is involved in related litigation with several states. Earlier this year, a Massachusetts judge blocked Kalshi from offering sports event contracts (that order was later stayed on appeal). Arizona has filed criminal charges accusing Kalshi of operating an illegal gambling business — a move Kalshi CEO Tarek Mansour called a ‘total overstep.’ Kalshi did not immediately respond to requests for comment.