Nevada Sues Kalshi After Court Rejects Bid to Halt State Action

The state of Nevada has filed a civil lawsuit against prediction market platform Kalshi after a federal appeals court declined to block state regulators from pursuing action against the company’s sports event contracts.

The US Court of Appeals for the Ninth Circuit denied Kalshi’s request to stop enforcement efforts by the Nevada Gaming Control Board. Shortly after the ruling, the regulator launched a civil enforcement case in state court, alleging that Kalshi is offering unlicensed wagering products in violation of Nevada gaming laws.

State officials argue that Kalshi’s sports event contracts effectively allow users to bet on the outcomes of sporting events without obtaining the required state license.

Kalshi Seeks Federal Jurisdiction Under Commodity Laws

Kalshi responded by filing a motion to move the case to federal court, asserting that its contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission. The company maintains that its event contracts qualify as commodity derivatives regulated at the federal level, not as state-governed gambling products.

The dispute reflects a broader legal battle between state regulators and prediction market platforms. The CFTC has recently supported similar arguments in related cases, signaling a growing jurisdictional clash over how event-based contracts should be regulated across the United States.

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.