Key Takeaways
- A 14-day temporary restraining order against Kalshi was granted by Nevada’s First Judicial District Court on Friday
- Kalshi must suspend sports, entertainment, and election contracts throughout the state during this period
- Nevada Gaming Control Board initially directed Kalshi to cease sports contracts in 2025
- Federal authority over prediction markets is being claimed by the CFTC, creating tension with state-level regulators
- Charges for operating an unlicensed gambling business were filed against Kalshi by Arizona earlier this week
Kalshi, a prediction market platform, received an order from Nevada authorities to cease offering event contracts in the state for a minimum of two weeks. The temporary restraining order came from the First Judicial District Court of Nevada on Friday, March 20.
Sports, entertainment, and election contracts on the platform fall under the scope of this order. April 3 has been set as the date for a subsequent hearing.
This conflict has been ongoing. A cease-and-desist order was initially issued to Kalshi by the Nevada Gaming Control Board in 2025, instructing the company to halt sports-based event contracts within the state.
Kalshi responded by claiming federal regulation governs its operations, which the company asserted takes precedence over state authority. The company attempted to transfer the case to federal court.
That attempt was unsuccessful. The U.S. Court of Appeals for the Ninth Circuit rejected Kalshi’s motion to stay the case on Thursday and returned it to Nevada.
The Nevada judge determined that the gaming board’s ability to perform its duties is compromised while Kalshi operates without obtaining a state license. The court stated that an “unlicensed participant beyond the Board’s control” interferes with the board’s capacity to fulfill its statutory obligations.
Kalshi chose to withhold comment regarding the Nevada ruling.
Federal Regulator Asserts Control
Michael Selig, Chair of the U.S. Commodity Futures Trading Commission, has been challenging state actions at the federal level. He submitted a court brief contending that the CFTC, rather than individual states, possesses proper authority over prediction markets.
Selig has repeated this position at multiple public events and has committed to his agency’s continued assertion of jurisdiction. The CFTC has additionally published guidance notifying exchanges that list event-based contracts of their obligation to comply with rules under the Commodity Exchange Act.
Major League Baseball has aligned with the federal position, executing a memorandum of understanding with the CFTC regarding prediction market oversight. MLB additionally announced a separate partnership with Polymarket this week.
Multiple States Pursue Enforcement
Nevada represents one of several states taking action against Kalshi. Arizona’s attorney general filed charges against the company earlier this week for operating an unlicensed gambling business and offering illegal election wagering.
Tennessee has similarly initiated a case against prediction market operators concerning sports-event contracts.
Concerns have been raised at the federal legislative level as well. Democrat Rep. Ritchie Torres introduced a bill in January to restrict how elected officials interact with prediction markets, prompted by wagers placed on former Venezuelan President Nicolás Maduro’s capture.
Democratic lawmakers introduced the “Death Bets Act” last week, which would prohibit prediction market contracts connected to death, war, or assassination.
The Nevada court observed that the question of federal preemption in this area remains “nuanced and rapidly evolving.”
April 3, 2026 marks the next scheduled court date in the Nevada case.
