Nevada authorities halt Kalshi's operations amid legal disputes over unlicensed prediction markets.
A Nevada state judge has temporarily blocked Kalshi, a prediction market platform, from operating in the state. Carson City District Court Judge Jason Woodbury issued a restraining order on Friday, siding with the Nevada Gaming Control Board.
The order prohibits Kalshi from offering contracts related to sports, elections, and entertainment events for 14 days. Judge Woodbury ruled that these contracts qualify as a 'sports pool' under Nevada law, and Kalshi lacks the required license to operate them.
Nevada Gaming Control Board Chair Mike Dreitzer stated that prediction markets facilitating unlicensed gambling are illegal in Nevada. He emphasized the board's duty to protect the public from such activities.
Context of the Legal Action
This decision follows a federal appeals court ruling on Thursday that denied Kalshi's emergency request to halt proceedings. The Nevada Gaming Control Board had sued Kalshi last month, arguing that the company's contracts fall under state gambling regulations.
Judge Woodbury noted in his order that federal preemption arguments by Kalshi are unconvincing at this stage, with the balance of legal authority favoring state jurisdiction. A hearing for a preliminary injunction is scheduled for April 3.
Kalshi faces similar challenges in other states. Earlier this year, a Massachusetts judge banned Kalshi's sports contracts, though that ban was later lifted on appeal. In Arizona, criminal charges were filed against Kalshi this week, alleging illegal gambling operations.
The company has not yet responded to the Nevada ruling, according to reports from the source. This case highlights ongoing regulatory scrutiny of prediction markets across the U.S.
