A Nevada court has issued a temporary 14-day ban on Kalshi, a prediction market firm, prohibiting it from offering various contracts in the state. This decision comes amid ongoing legal disputes regarding the regulation of prediction markets.
The First Judicial District Court of Nevada announced the restraining order on March 20, 2026, following a federal appeals court’s ruling that allowed state regulators to pursue the ban. The Nevada Gaming Control Board had initially sought this action in 2025, instructing Kalshi to halt its sports-related contracts.
Kalshi had requested that the case be transferred to federal court, but the appeals court determined that it should remain in Nevada. The court’s ruling highlighted concerns that Kalshi’s operations hinder the Gaming Control Board’s ability to perform its regulatory duties.
As a result of the court’s order, Kalshi is now barred from conducting bets related to sports, entertainment, and elections in Nevada while the legal arguments continue. A hearing is scheduled for April 3 to further address the matter.
In addition to the Nevada situation, Kalshi is facing legal challenges in multiple states. Recently, Arizona’s attorney general accused the firm of operating an unlicensed gambling business and facilitating illegal election betting.
Meanwhile, Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), has asserted that his agency should have jurisdiction over prediction markets, countering state regulatory claims. He has filed a court brief supporting this position and has expressed intentions to establish CFTC policies governing these markets.
Federal regulation typically takes precedence over state laws, but the courts may need to clarify jurisdictional authority. Notably, Major League Baseball has aligned with the CFTC, recently signing an agreement to collaborate on the oversight of prediction markets.
A Nevada court has enacted a 14-day ban on Kalshi's prediction market contracts amid ongoing regulatory disputes. This ruling reflects broader legal challenges the firm faces across multiple states regarding its operations.