Nevada Judge Extends Kalshi Ban

Submitted by Aaron Goldstein on

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Aaron Goldstein

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Kalshi

A Nevada judge on Friday moved to extend a ban on the prediction market Kalshi, citing regulators claims the company is operating without a proper gaming license to conduct business in the state.   Kalshi is licensed federally by the Commodity Future Trading Commission.

Nevada judge Jason Woodbury agreed with state regulators that the prediction market offers a platform for gambling, contrary to Kalshi CEO Tarek Mansour's claim that users are trading contracts (like derivatives), not placing bets.  Woodbury found that purchasing such contracts mirrors traditional sports betting.

He highlighted that the activity is "indistinguishable" from placing wagers through licensed operators, making it subject to Nevada's strict gaming laws.

The ruling extends a temporary restraining order issued in March, which bars Kalshi from offering contracts tied to sports, elections and entertainment through at least mid-April while terms of a longer-term injunction are finalized.

Nevada currently stands as the only state to secure a court-enforced ban against Kalshi.

Nevada is not among the states the administration of U.S. President Donald Trump sued this past week.

The Trump administration on Thursday filed lawsuits against three states, claiming prediction markets should be permitted under the oversight of the federal government. 

Those three states include Illinois, Connecticut and Arizona. 

Like Nevada, all three have taken action to prevent Kalshi and other prediction markets from operating in their respective states.  

Arizona Attorney General Kris Mayes made regulatory history by filing the first-ever criminal charges against Kalshi.

Earlier this week, it was reported that Kalshi, in a November trademark filing, requested that the U.S. Patent and Trademark Office categorize its product within the gambling industry.

  • Aaron Goldstein, Gambling911.com 

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