Nevada's First Judicial District Court has issued a 14-day temporary restraining order against prediction market platform Kalshi, directing it to cease offering event contracts in the state while litigation over regulatory jurisdiction proceeds. A follow-up hearing is scheduled for 3 April.
The Nevada Gaming Control Board first sought to halt Kalshi's sports contracts in 2025. Kalshi had attempted to move the dispute to federal court, arguing it faced "imminent harm" from state action, but a federal appeals court rejected that manoeuvre last Thursday and sent the case back to Nevada. The state court then concluded that an unlicensed operator "beyond the Board's control" obstructs the regulator's ability to fulfil its statutory functions. The WSJ reported the court determined Kalshi must obtain state gambling licences and prohibit users under 21 if it wishes to operate there.
The Nevada ruling is one front in a widening legal battle. Arizona's attorney general separately charged Kalshi this week with running an unlicensed gambling business and offering illegal election wagering. The company is facing suits or prosecutions in several states on similar grounds.
At the federal level, CFTC Chairman Brian Quintenz's successor, Mike Selig, has filed a court brief asserting that his agency holds primary jurisdiction over prediction markets, not the states. He has promised to contest state-level enforcement actions. Federal preemption arguments may ultimately require court resolution to settle the jurisdictional question definitively. Major League Baseball has aligned with the CFTC's position, signing a memorandum of understanding on prediction market oversight and separately partnering with rival platform Polymarket.
Kalshi declined to comment on the Nevada development.
