Nevada Judge Extends Ban on Kalshi’s Event Contracts, Citing Gambling Concerns

A Nevada judge has extended a preliminary injunction against Kalshi, preventing the platform from offering event-based contracts in the state. The ruling, issued by Judge Jason Woodbury, asserts that Kalshi’s products are functionally equivalent to sports betting and require a gaming license under Nevada law. The temporary restraining order, initially issued on March 20, will remain in place through April 17 while the court evaluates longer-term restrictions. Kalshi, based in New York, has argued that its contracts are financial derivatives regulated by the Commodity Futures Trading Commission (CFTC). However, the judge rejected this defense, stating that the platform’s offerings are indistinguishable from traditional gambling activities. The decision marks the first state-level court-enforced ban currently in effect against Kalshi. Earlier this month, Utah lawmakers passed a bill targeting prediction markets, aiming to classify proposition-style bets on in-game events as gambling. The CFTC has asserted its authority over prediction markets, with Chairman Michael Selig emphasizing the agency’s readiness to defend its jurisdiction in court. The case highlights ongoing regulatory tensions between state and federal oversight of digital assets and derivatives.