TLDR
- A Nevada court granted a 14-day temporary restraining order against Kalshi on Friday, March 20
- The injunction blocks Kalshi from operating sports, entertainment, and election-related contracts within Nevada
- Nevada’s Gaming Control Board initially ordered Kalshi to cease sports contracts earlier in 2025
- Federal regulators at the CFTC claim jurisdiction over prediction platforms, creating conflict with state authorities
- Arizona prosecutors filed charges against Kalshi this week for operating without proper gambling licenses
Prediction market operator Kalshi must cease its Nevada operations for a minimum of two weeks following a court directive. On Friday, March 20, Nevada’s First Judicial District Court granted the temporary restraining order.
The judicial order encompasses all sports, entertainment, and election-based contracts available through the platform. The court has scheduled a subsequent hearing for April 3.
This legal confrontation has been building for some time. Earlier in 2025, Nevada’s Gaming Control Board delivered a cease-and-desist directive to Kalshi, demanding the company terminate its sports-related event contracts in Nevada.
Kalshi challenged this action, contending that federal oversight takes precedence over state regulatory power. The platform attempted to transfer the proceedings to federal court.
That strategy proved unsuccessful. On Thursday, the Ninth Circuit U.S. Court of Appeals rejected Kalshi’s request to pause the case and returned jurisdiction to Nevada courts.
The Nevada judge determined that the gaming board’s regulatory responsibilities are compromised while Kalshi operates without state licensing. According to the court’s reasoning, an “unlicensed participant beyond the Board’s control” interferes with the board’s statutory obligations.
Kalshi has not issued a statement regarding the Nevada decision.
CFTC Steps In
On the federal front, Commodity Futures Trading Commission Chair Michael Selig has been challenging state enforcement actions. He submitted a court filing asserting that the CFTC, rather than individual states, possesses regulatory authority over prediction platforms.
Selig has reiterated this position at multiple public forums and pledged his agency’s continued assertion of jurisdictional control. The CFTC has additionally issued guidance clarifying that exchanges offering event-based contracts must comply with Commodity Exchange Act regulations.
Major League Baseball has aligned with the federal regulatory framework, executing a memorandum of understanding with the CFTC regarding prediction market supervision. MLB separately announced a collaborative agreement with Polymarket this week.
Legal Pressure Mounting
Nevada isn’t alone in taking action against Kalshi. This week, Arizona’s attorney general filed criminal charges alleging the company operates an unlicensed gambling enterprise and offers prohibited election wagering.
Tennessee has similarly initiated legal proceedings against prediction market platforms concerning sports-event contracts.
Federal legislators have also expressed apprehension. In January, Democratic Representative Ritchie Torres proposed legislation restricting how government officials engage with prediction markets, prompted by wagers placed on former Venezuelan President Nicolás Maduro’s potential capture.
Last week, Democratic members of Congress introduced the “Death Bets Act,” proposing to prohibit prediction market contracts related to death, armed conflict, or assassination.
The Nevada court acknowledged that federal preemption questions in this domain remain “nuanced and rapidly evolving.”
The Nevada case returns to court on April 3, 2026.
