A Nevada judge has issued an order barring prediction market operator Kalshi from offering sports, election, and entertainment-related event contracts to state residents without a gaming license, marking a significant regulatory hurdle for the New York-based company. Judge Jason Woodbury, ruling from Carson City, extended a temporary restraining order initially set on March 20, and granted the order on April 28, following a motion by the Nevada Gaming Control Board.
The court order mandates that Kalshi must comply with the ban by May 4, 2026, requiring the implementation of technological measures like geolocation or geofencing to block Nevada users from accessing the restricted contracts. These include offerings under Kalshi’s sports, elections, and culture tabs on its platform, covering outcomes of sporting events, political races, and entertainment events. If compliance by the deadline proves unfeasible, Kalshi can request an extension, provided it submits a detailed explanation and progress report under sworn declaration.
Woodbury dismissed arguments from Kalshi’s legal team that such event contracts qualify as swaps under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). He equated trading these contracts to placing a traditional bet, stating, “No matter how you slice it, that conduct is indistinguishable.”
Nevada stands as the only state with a court-enforced ban currently in effect against Kalshi, amid a broader legal clash over state authority to regulate prediction markets. The CFTC has separately sued three states, including Arizona, which recently pursued criminal charges against Kalshi for operating an illegal gambling business. In Massachusetts, a similar injunction blocking sports event contracts remains on hold pending Kalshi’s appeal.
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Kalshi’s platform enables users to place financial bets on a wide array of event outcomes by trading event contracts, a model that has drawn scrutiny from state regulators seeking to classify it as gambling. The company’s next steps in Nevada hinge on its ability to adapt technologically or secure a gaming license, with the May 4, 2026, compliance deadline looming as a critical marker.
The ruling adds pressure to Kalshi’s operations, as it navigates overlapping federal and state legal challenges. Nevada’s injunction, now formalized, extends beyond the initial 14-day restraining order and sets a precedent that could influence other states’ approaches.
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