- A Nevada judge has issued a 14-day temporary restraining order against the prediction market Kalshi, blocking its operation in the state.
- The Nevada Gaming Control Board argues Kalshi’s event contracts constitute illegal, unlicensed gambling under state law, a claim the court finds the state is likely to win.
- Kalshi contends its activities are under federal jurisdiction, but the judge ruled the legal precedent currently weighs against this argument.
- This is part of a broader multi-state legal battle for Kalshi, which faces similar regulatory actions in Arizona and Massachusetts.
A Nevada judge has temporarily blocked the prediction market platform Kalshi from operating in the state, siding with regulators who argue its contracts are illegal gambling. Carson City District Court Judge Jason Woodbury issued the 14-day restraining order on Friday, March 20, 2026.
The order specifically bans Kalshi from offering sports, election, and entertainment-related event contracts in Nevada. Judge Woodbury stated these contracts legally constitute an unlicensed “sports pool” under Nevada’s strict gambling statutes.
Consequently, the Nevada Gaming Control Board Chair Mike Dreitzer stated the board has a “statutory duty to protect the public” from unlicensed gambling. However, Kalshi asserts its contracts fall under the exclusive jurisdiction of the federal Commodity Futures Trading Commission.
The judge rejected this preemption argument, noting the legal question is “nuanced and rapidly evolving.” He scheduled a hearing for April 3 to consider a longer-term preliminary injunction against the company.
Meanwhile, this Nevada action follows a federal appeals court decision allowing state regulators to proceed. Kalshi is engaged in similar legal fights across multiple states challenging its business model.
Arizona recently filed criminal charges against the company, which CEO Tarek Mansour called a “total overstep.” A Massachusetts judge also imposed a ban earlier this year, though it was later lifted pending appeal.
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