Nevada judge blocks Kalshi operations as legal fight over prediction markets escalates

A Nevada judge has issued a temporary restraining order blocking prediction market operator Kalshi from operating in the state without a license, marking the latest escalation in a growing legal battle between state regulators and the industry.

Judge Jason Woodbury of the Carson City District Court granted the order at the request of the Nevada Gaming Control Board, preventing Kalshi from offering event contracts tied to sports, elections and entertainment to Nevada residents.

The judge found that such contracts could amount to unlicensed gambling under state law. Kalshi was operating a “sports pool” under Nevada gaming law. A hearing has been scheduled for April 3 to consider whether a longer-term preliminary injunction should be imposed.

Kalshi has argued that its contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission, but the court rejected that position, affirming the authority of Nevada regulators to pursue enforcement.

“Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public,” said Mike Dreitzer.

The ruling comes as Kalshi faces mounting legal pressure across multiple U.S. states. A Massachusetts court has already issued an injunction barring the company from offering sports-related event contracts, though that decision is on hold pending appeal. Arizona has also filed criminal charges against the firm, becoming the first state to do so.

In a parallel development, the U.S. Court of Appeals for the Ninth Circuit denied Kalshi’s emergency request to continue operating in Nevada while its appeal is heard, sending the case back to the state court. Kalshi had sought to move the dispute to federal court, but that effort was rejected.

Legal experts say the dispute reflects a broader national clash over whether prediction markets fall under federal commodities regulation or state gambling laws, with some expecting the issue to ultimately be decided by the U.S. Supreme Court.

“Barring SCOTUS emergency intervention, a Nevada state court-issued TRO (temporary restraining order) against Kalshi appears imminent,” said Daniel Wallach on X.