TLDR
- Nevada Gaming Control Board sued Kalshi on Feb 17, 2026, to block it from offering sports prediction market contracts in the state
- The CFTC filed a brief the same day claiming it has exclusive jurisdiction over prediction markets
- A Massachusetts injunction against Kalshi was put on hold while Kalshi appeals
- Nevada argues Kalshi must be licensed under state gaming law, including age restrictions and anti-match-fixing rules
- Kalshi has moved to transfer the Nevada case to federal court, arguing the CFTC has sole jurisdiction
Nevada gaming regulators have filed a lawsuit against prediction market company Kalshi, saying it is operating illegally in the state by offering sports event contracts without a license.
The Nevada Gaming Control Board filed the civil enforcement action on February 17, 2026, in a Carson City court. It is asking for a declaration and injunction to stop Kalshi from continuing to operate.
Kalshi runs a derivatives exchange and prediction market where users can buy event contracts — financial products that let people bet on the outcome of events, including sports like football and basketball.
Nevada says that offering these sports event contracts counts as wagering activity under state law. That means any company doing so must hold a state gaming license.
The board says Kalshi has not met state requirements. Those include rules that ban anyone under 21 from placing wagers and require safeguards against insider betting and match fixing.
Kalshi is based in New York and disagrees with Nevada’s position. The company argues that its products are a form of swaps — a type of derivative contract — and fall under the exclusive authority of the federal Commodity Futures Trading Commission.
Shortly after the lawsuit was filed, Kalshi moved to transfer the case to federal court. It says the case is a matter of federal law, not state gaming law.
On the same day, the CFTC backed that view by filing a brief in related litigation. The agency argued it has exclusive jurisdiction over prediction markets like Kalshi’s.
A Growing Legal Fight Across Multiple States
This is not the first time Nevada has taken action against a prediction market company. In January, the board filed a similar civil enforcement action against Polymarket. Courts have also issued orders blocking both Coinbase and Polymarket from offering event contracts in the state.
Nevada is now seeking a temporary restraining order against Kalshi, similar to what courts granted against those other companies.
Massachusetts has also taken action. A judge there issued an injunction against Kalshi on February 5, 2026, following a case brought by the state attorney general. That injunction was set to take effect in 30 days.
However, a Massachusetts state appeals court justice put that injunction on hold on February 17 while Kalshi’s appeal is heard.
Federal Legislation Also in the Mix
Democratic Nevada Congresswoman Dina Titus introduced the Fair Markets and Sports Integrity Act earlier in February. The bill aims to limit the growth of prediction markets.
The legislation came after reports that Kalshi handled $871 million in Super Bowl event contracts, drawing attention from lawmakers and gaming regulators.
Kalshi has sought for months to stop Nevada from filing a case against it. A federal appeals court declined on February 17 to block a judge’s November order that had removed an earlier injunction protecting Kalshi from Nevada enforcement.
