A Nevada state judge has extended a temporary ban on Kalshi’s sports related prediction markets, citing concerns that the contracts are “indistinguishable” from traditional gambling. Judge Jason Woodbury of the First Judicial District Court approved the extension of a temporary restraining order originally issued on March 20 and granted the Nevada Gaming Control Board’s request for a preliminary injunction. The injunction prevents Kalshi from offering certain prediction market products until a broader legal case is resolved.
The judge specifically noted that buying a contract on a baseball game through Kalshi is equivalent to placing a bet on a state gaming platform. “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,” Woodbury said. The original restraining order also applied to entertainment and election-related contracts.
Federal vs State Regulatory Debate
Kalshi argues that its markets are federally regulated designated contract markets offering swaps, a type of derivative, and thus fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). The CFTC, led by Chairman Mike Selig, has supported Kalshi and other prediction market providers, filing an amicus brief and lawsuits against Arizona, Illinois, and Connecticut alongside the Department of Justice to assert federal oversight.
The ruling comes amid ongoing nationwide legal disputes, with similar hearings taking place in Arizona, where Kalshi is challenging state attempts to block its products, including criminal allegations filed by Arizona Attorney General Kris Mayes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.