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Gaming Edge’s TL;DR
- Kalshi has stopped accepting sports, entertainment and election wagers in Nevada after a state judge issued a 14-day temporary restraining order.
- Nevada bettors can still sell positions or access unrelated markets, but new contracts in those categories are paused while legal battles play out.
Judge Jason Woodbury issued a temporary restraining order that prevents Kalshi from offering sports, entertainment, and election markets to Nevada residents pending a preliminary injunction hearing on April 3 in Carson City.
Kalshi initially continued to accept deposits and wagers but sent an email and text Saturday saying, “Due to a temporary court order, our markets related to sports, entertainment, and elections are being restricted in Nevada.”
Customers were told they could sell positions or wait for resolution; other markets such as crypto, weather, and world news remain available. The TRO followed a Ninth Circuit denial of Kalshi’s stay request and cited concerns including alleged acceptance of bets from people under 21 and state oversight of sports integrity.
The American Gaming Association and Nevada regulators have publicly supported enforcement actions, and Arizona has separately filed a 20-count criminal complaint alleging illegal gambling activity by Kalshi.
States have been winning legal cases lately
Operators face expanding enforcement risks as states assert gambling jurisdiction over prediction markets that the Commodity Futures Trading Commission otherwise oversees. Expect more geo-blocking and product restrictions where state regulators push back.
Financially, states argue these platforms erode tax revenue and offer no local economic benefits, a key part of Nevada’s legal rationale.
For operators and investors, the rulings raise regulatory uncertainty that can affect valuations, market access, and partner relationships with regulated sportsbooks and casinos. Industry observers note a recent string of state wins, a trend that could force prediction market firms to rework compliance, licensing strategies, or pull back on higher-risk US offerings.
Key dates to watch are the April 3 Nevada preliminary injunction hearing and a parallel motion in federal court in Arizona the same day, with Arizona’s criminal case initial appearance slated for April 13.
Based on reporting by Buck Wargo for CDC Gaming.
