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Gaming Edge’s TL;DR
- Nevada’s court has extended a ban on Kalshi’s event contracts, keeping the platform barred from offering sports, entertainment, and election markets to state residents without a gaming license.
- This reinforces state-level control over prediction markets and signals immediate practical limits for Nevada bettors who used Kalshi for event-based trades.
A Nevada judge, Jason Woodbury of the First Judicial District Court in Carson City, agreed to extend a temporary restraining order (TRO) into a preliminary injunction that bars Kalshi from offering event-based contracts tied to sports, entertainment, and elections to people in Nevada unless the company holds a state gaming license.
The court concluded that buying these contracts closely mirrors placing a bet through a licensed operator, rejecting Kalshi’s argument that the contracts are federally regulated “swaps” under the Commodity Futures Trading Commission (CFTC).
The TRO – originally issued in March and extended to allow the parties to finalize injunction language – keeps Kalshi off the Nevada market while the legal terms are formalized.
Commenting on LinkedIn, attorney Daniel Wallach called the ruling a “big win for Nevada,” and noted Nevada now joins Massachusetts in securing preliminary injunctive relief against Kalshi.
Prediction markets remain on shaky ground across US
The decision means Kalshi’s event contracts tied to sporting outcomes and other events remain inaccessible in-state, effectively forcing bettors to use state-licensed sportsbooks or other legal alternatives.
Prediction market firms that want to serve Nevada customers will need to consider state gaming licensing, structural product changes, or geoblocking.
Financially, Kalshi could see reduced liquidity and fewer US customers while litigation persists, and operators in adjacent markets may recalibrate product offerings and compliance costs. The ruling also deepens a fragmented legal landscape – courts in other states (Tennessee, New Jersey) have issued more favorable outcomes for Kalshi, while Massachusetts and Nevada have moved to enjoin the platform – meaning firms and bettors should expect a patchwork of rules by jurisdiction.
Based on reporting by Jenny Ortiz-Bolivar for Sigma.
