A Nevada judge expanded an order blocking the prediction market platform Kalshi Not allowing residents to trade contracts associated with sports and other events unless the company first obtains a state gaming license. The decision, issued April 3 in Carson City, marks a significant escalation in efforts by state regulators to control how such practices occur. platforms run it locally.
Judge Jason Woodbury The interim injunction requested by was granted. Nevada Gaming Control Card after a hearing.
Movement hinders Kalshi new York-based firm has ceased offering these event contracts to users in the state without proper authorization.
During arguments, the company’s legal team insisted that the products were trade-in and therefore under the sole custody of the company. US Commodity Futures Trading Commission.
Authorities too CFTC They took a similar position in separate court cases.
Woodbury disagreed, emphasizing the practical similarity between the two activities.
He observed that a person could place a $100 bet on a baseball game through a licensed Nevada gaming operator or achieve the same financial outcome by purchasing a similar contract from Kalshi’s platform.
In the judge’s view, the conduct is indistinguishable no matter how it is structured.
It concluded that the activity amounted to gambling, which unlicensed establishments were prohibited from conducting.
The order extends the temporary restraining order first issued on March 20.
This 14-day injunction was extended until April 17, giving the court time to finalize the text and duration of the longer-term injunction.
Kalshi Questions about the decision have not yet been answered publicly.
As reported by ReutersNevada now stands alone as the only state to impose a court-ordered ban on the company’s operations.
Kalshi has become the focal point of a growing legal conflict over states’ authority to regulate prediction markets.
These platforms allow users to place financial bets on the expected outcomes of real-world events, including everything from sports results to election results to entertainment developments, by buying and selling special event contracts.
The Nevada case comes amid increasing federal-state friction.
On April 2, CFTC It filed a lawsuit against three states, challenging their authority to impose rules on platforms like Kalshi.
One of these states ArizonaHe recently became the first person to file a criminal complaint against the company for allegedly running an illegal gambling business.
Separate court order blocked in Massachusetts Kalshi The firm is currently suspended from offering sports-related contracts while its appeal is ongoing.
Legal observers say these disputes highlight deeper questions about jurisdiction in the fast-growing prediction market industry.
States argue that they must protect consumers and maintain control over gambling activities within their borders.
Federal editorsMeanwhile, he claims that most of these contracts fall under commodity trading rules.
While the courts continue to consider competing claims, Nevada plugin may influence how other jurisdictions approach similar regulatory challenges. There will likely be further developments in the coming weeks as the injunction takes shape and additional objections progress.
