Kalshi Scores Key Legal Win in Nevada Prediction Market Case

A federal judge has granted Kalshi a major legal victory in its ongoing conflict with Nevada regulators, marking a significant landmark in the ongoing disputes surrounding prediction markets in the USA. The newest ruling allows the controversial platform to keep offering sports event contracts in the state, at least until the ongoing lawsuit reaches its conclusion.

Kalshi Argues It Can Operate Without NGCB Oversight

The ruling is a turning point for Kalshi in its legal dispute over a cease-and-desist order by the Nevada Gaming Control Board (NGCB) after the regulator claimed the platform’s operations violated state gambling laws. Kalshi, a federally regulated event contracts exchange under Commodity Futures Trading Commission (CFTC) oversight, pushed back by filing suit in the US District Court.

The core of Kalshi’s argument revolves around the notion that since Kalshi operates under the CFTC, it should not be subject to state-level gambling regulations. The NGCB disagrees, arguing that offering sports-related contracts in Nevada constitutes unauthorized gambling and falls under state gaming laws.

The tension between state and federal oversight has intensified as prediction markets blur the line between speculative finance and traditional gambling. While Kalshi operates with CFTC approval, the platform’s contracts on elections, economic data, and sporting outcomes have drawn increasing scrutiny from state regulators, tribal entities, and established sports wagering operators.

The Company Faces Rising Challenges

This newest ruling by US District Court Judge Andrew P. Gordon partially granted Kalshi’s request for a temporary restraining order and preliminary injunction, effectively blocking the NGCB from enforcing its cease-and-desist order and keeping Kalshi’s operations in the state safe for now. In an official statement for Front Office Sports, the company lauded the court’s decision.

We are grateful for the court’s attention to this matter and recognition of Kalshi’s status as a CFTC-regulated exchange.

Kalshi statement

Nevada is just one of several states that have attempted to curtail Kalshi’s operations. In recent months, New Jersey, Illinois, Maryland, Ohio, and Montana issued separate cease-and-desist orders targeting Kalshi and similar platforms like Robinhood and Crypto.com, citing concerns over unauthorized sports betting. A potential Kalshi win in Nevada could set a precedent for these other cases, especially as prediction markets broaden their reach. 

While Kalshi enjoys growing momentum, the company faces enduring legal and regulatory hurdles. For now, Kalshi’s ability to offer sports event contracts in Nevada represents a small but vital victory. However, as stakeholders continue to clash over jurisdiction and consumer protections, the outcome of this legal battle may shape the future of prediction markets in the United States.