TLDR
- A Nevada judge extended the ban on Kalshi and signaled he will grant a preliminary injunction against the prediction market platform
- The court ruled Kalshi’s event contracts are “indistinguishable” from sports betting under Nevada law
- Kalshi must implement geofencing technology to block Nevada users by May 4
- The ban covers not just sports contracts but also election and entertainment-based contracts
- Nevada has now received favorable rulings against Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase
A Nevada state judge has extended the ban on prediction market platform Kalshi and indicated he plans to issue a preliminary injunction. The ruling makes Nevada the only state with a court-enforced, active ban on a prediction market operator.
Judge Jason Woodbury of the First Judicial District Court in Carson City said Kalshi’s event contracts are gambling under Nevada law. He gave the company until May 4 to set up geofencing technology to block Nevada residents from using the platform.
The April 3 ruling extends a 14-day temporary restraining order first issued on March 20. That earlier order banned Kalshi from offering sports, election, and entertainment-based contracts in the state.
Woodbury said he will issue a preliminary injunction and another short-term restraining order while he finalizes the details. The injunction would effectively keep Kalshi locked out of Nevada until the case moves forward.
Kalshi’s Federal Jurisdiction Argument Rejected
Kalshi argued its contracts fall under exclusive federal jurisdiction because they are financial instruments regulated by the Commodity Futures Trading Commission. The judge rejected that argument.
Woodbury sided with the Nevada Gaming Control Board’s position that the contracts work the same as traditional wagering. He said a person could walk a few blocks and place a bet on the Dodgers, do the same through a licensed sportsbook app, or buy a sporting event contract on Kalshi.
“No matter how you slice it, that conduct is indistinguishable,” Woodbury said.
The court’s geofencing requirement directly challenges one of Kalshi’s key defenses across multiple cases. The company has argued that geofencing would be too expensive to implement.
However, licensed sportsbooks in Nevada already use this technology. The ruling puts Kalshi on the same compliance footing.
If Kalshi needs more time, it must explain what progress it has made and how long it will take to finish. The court left the door open for an extension but set a high bar.
Ban Reaches Beyond Sports Contracts
The ban goes further than sports. It also covers contracts tied to elections and entertainment outcomes.
Nevada Deputy Attorney General Jessica Whelan said state law covers wagers on “other events.” That includes outcomes related to awards shows, television, movies, and music.
Sports contracts make up an estimated 90% of Kalshi’s total trading volume, according to the state. That means the ban targets the bulk of the platform’s business.
Woodbury’s ruling is the latest in a string of decisions favoring state regulators over prediction market platforms. On March 26, the Nevada Gaming Control Board received a preliminary injunction against Coinbase.
Nevada has now won favorable rulings against five companies: Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase.
Courts in Ohio, Michigan, Arizona, Maryland, and Massachusetts have also sided with regulators. Only two rulings in New Jersey and Tennessee have gone in Kalshi’s favor.
The CFTC has filed lawsuits against Illinois, Arizona, and Connecticut. The federal agency argues that state attempts to regulate prediction markets step on its authority under the Commodity Exchange Act.
The geofencing deadline of May 4 is the next key date in the case. Kalshi has not yet publicly responded to the latest ruling.
