Kalshi is now under a two-week restraining order barring betting in Nevada while a legal debate continues over the long-term status of the prediction markets there.
The First Judicial District Court of Nevada issued a 14-day order on Friday ordering the platform to cease offering event contracts in that state. A federal appeals court on Thursday cleared the way for state regulators to seek the order that the Nevada Gaming Control Board first sought in 2025 when it told Kalshi to end its sports contracts.
Kalshi had argued that the case should be moved to federal court, but the appeals court sent it back to Nevada, despite the company’s claim that it “faces imminent harm” from the state’s actions.
On Friday, the state court halted Kalshi’s sports, entertainment and election betting as the parties continue to wrangle over the relative authority of state regulators to govern event contracting businesses.
The Nevada judge ruled that the board cannot function properly under these circumstances and “an unlicensed participant outside the board’s control, such as Kalshi, impedes the board’s ability to perform its statutory functions.” The court follows up with a hearing on April 3.
A spokesman for Kalshi declined to comment on the Nevada development. Kalshi is being sued or prosecuted in several states on similar grounds. Earlier this week, the Arizona Attorney General charged Kalshi with operating an unlicensed gambling business and offering illegal election campaigns.
Meanwhile, US Commodity Futures Trading Commission Chairman Mike Selig insists that his federal agency actually has the proper authority over the markets, not the states. He filed a lawsuit over that argument and has repeated it in a series of recent public appearances, vowing to fight the states on that point. He has also begun developing CFTC policies on prediction markets.
Federal regulation generally supersedes state regulation, but courts may have to weigh who has the right to jurisdiction. Major League Baseball, for one, has squared off with the CFTC, signing a memorandum of understanding this week to oversee prediction markets and also partnering with Polymarket.
Read more: CFTC’s Selig opens legal dispute against states that get in the way of prediction markets
