A Nevada court sided with regulators and ruled that Kalshi's event contracts are no different from sports betting, keeping the company locked out of the state's event-contract market. Judge Jason Woodbury said he would grant a preliminary injunction against Kalshi, preventing the platform from offering contracts tied to sports, elections, and entertainment outcomes without a gaming license. The ruling extends a temporary restraining order issued on March 20, which remains in effect through April 17.
Contracts Equated to Wagers
Kalshi had argued its products are “swaps” subject to oversight by the Commodity Futures Trading Commission (CFTC). But Judge Woodbury rejected that defense. Reuters quoted him as saying buying a contract tied to a game result is the same as placing a wager at a sportsbook: “No matter how you slice it, that conduct is indistinguishable.” The Nevada Gaming Control Board had asked the court to block Kalshi, and the judge agreed.
First Court-Enforced Ban Against Kalshi
This is the first time a state has secured a court-enforced ban currently active against Kalshi. It gives Nevada an early legal win as more states scrutinize prediction markets. Utah also moved against the sector last month, passing a bill that classifies proposition-style bets on in-game events as gambling and seeks to block platforms like Kalshi and Polymarket.
CFTC vs. States: Jurisdictional Battle
The case adds to the broader debate over whether prediction market contracts fall under federal derivatives law or state gambling rules. CFTC Chairman Michael Selig said last month the agency will fight in court to protect its jurisdiction. He described prediction markets as “truth machines,” suggesting they provide clearer signals than polls — setting up a sharper clash between federal oversight claims and state gaming laws.