Nevada Judge Extends Ban on Kalshi's Event-Based Contracts

A Nevada judge extended a ban on Kalshi, preventing it from offering event-based contracts without a gaming license. The court sided with the Nevada Gaming Control Board, disputing Kalshi's defense that their contracts are under the CFTC's jurisdiction, marking a significant legal recognition of state oversight.

A Nevada judge has declared that Kalshi, a prediction market operator, cannot offer event-based contracts within the state borders unless it secures a gaming license. This ruling following the Nevada Gaming Control Board's request secures a preliminary injunction against the company.

Judge Jason Woodbury dismissed Kalshi's argument that such contracts are regulated by the U.S. Commodity Futures Trading Commission, likening the contracts to typical gambling bets, thereby upholding the state's rights to enforce gaming laws. The decision extends a temporary order issued in March, aiming to prevent the sale of event contracts related to sports and entertainment.

This case spotlights the ongoing battle about states' regulatory power over prediction markets. As legal proceedings continue, including Massachusetts granting an injunction against Kalshi's sports event contracts, Nevada remains central to this conflict as the only state to secure a legal halt against the company.

(With inputs from agencies.)