A Nevada state judge has prolonged a temporary ban on Kalshi’s sports-related prediction markets, deeming them akin to gambling activities. The ruling was made on Friday during a court session held in Carson City.
Judge Jason Woodbury of the First Judicial District Court granted the Nevada Gaming Control Board’s request for a preliminary injunction against Kalshi, which prohibits the company from offering certain prediction markets until a broader legal case is resolved. This extension follows an initial restraining order issued on March 20, which has now been extended by two weeks to clarify the injunction’s language.
In his remarks, Judge Woodbury asserted that purchasing a contract for a baseball game on Kalshi is essentially the same as placing a bet through a state-licensed gaming platform. He stated, “I find based on the arguments that have been presented that it is a gaming activity that is prohibited for any non-licensee to engage in.”
Neither Kalshi nor the Nevada Gaming Control Board responded to requests for comments regarding the ruling. State regulators across the U.S. have been actively working to restrict prediction market providers, arguing that their sports-related offerings resemble gambling products that should fall under state regulation.
Kalshi, along with other prediction market providers, contends that they are federally regulated designated contract markets, offering swaps—derivative products that they believe exempt them from state oversight. The Commodity Futures Trading Commission (CFTC), led by Chairman Mike Selig, has supported these companies’ claims. Earlier this year, the CFTC filed an amicus brief in an appeals case and recently initiated legal action against Arizona, Illinois, and Connecticut, asserting its regulatory authority and alleging state overreach.
This ruling in Nevada coincides with another hearing in Arizona, where Kalshi is seeking to prevent state regulators from blocking its products. Arizona Attorney General Kris Mayes has previously filed information alleging criminal charges against Kalshi, and District Judge Michael Liburdi is currently reviewing the arguments presented.
A Nevada judge has extended a temporary ban on Kalshi's sports prediction markets, classifying them as gambling. This decision reflects ongoing regulatory challenges faced by prediction market providers in the U.S.