Kalshi is now the subject of a two-week restraining order banning betting in Nevada, while a legal debate continues over the long-term status of prediction markets there.
On Friday, Nevada’s First Judicial District Court issued a 14-day order, ordering the platform to stop offering event contracts in the state. A federal appeals court cleared the way Thursday for state regulators to seek the order, which the Nevada Gaming Control Board first sought in 2025, when it asked Kalshi to terminate his sports contracts.
Kalshi had argued that the case should go to federal court, but the appeals court sent it back to Nevada, despite the company’s assertion that it “faces imminent harm” because of the state’s actions.
The state court on Friday suspended betting on sports, entertainment and elections in Kalshi, as the parties continue to argue over the relative authority of state regulators to govern event contracting businesses.
The Nevada judge determined that the game board cannot function properly under these circumstances and that “an unlicensed participant beyond the board’s control, such as Kalshi, interferes with the board’s ability to perform its statutory functions.” The court will hold a hearing on April 3.
A Kalshi spokesperson declined to comment on the Nevada development. Kalshi is being sued in several states on similar grounds. Earlier this week, the Arizona attorney general charged Kalshi with running an unlicensed gambling business and offering illegal election betting.
Meanwhile, Chairman Mike Selig of the U.S. Commodity Futures Trading Commission insists that his federal agency actually has appropriate authority over markets, not states. He filed a brief in court making that argument and repeated it in several recent public appearances, promising he would fight the states on it. He also began establishing CFTC policies on prediction markets.
Federal regulations generally supersede state regulations, but courts may need to determine who is rightfully entitled to that jurisdiction. Major League Baseball, for example, has partnered with the CFTC, signing a memorandum of understanding this week on monitoring prediction markets and also signing a partnership with Polymarket.
Read more: CFTC’s Selig Opens Litigation Against States That Impede Prediction Markets
