Nevada court blocks prediction market Kalshi for 14 days after gambling dispute, raising new legal questions about event contracts and state gaming laws.
A court in Nevada has ordered prediction market company Kalshi to stop operating in the state for 14 days. The decision followed assertions by state regulators that the platform may be offering products for unlicensed gambling. Because of this order, Kalshi must not sell event contracts to users living in Nevada until the next hearing.
Nevada Court Says Kalshi Must Stop Event Contracts
According to Reuters, the First Judicial District Court in Nevada had issued a temporary restraining order against Kalshi. This order prohibits the company from selling contracts that are related to sports, elections and entertainment. The rule will remain in force for 14 days while the court investigates the case further.
BREAKING: Nevada state court issues TRO barring Kalshi from offering event-based contracts relating to sports, politics and entertainment to people within Nevada without first obtaining all required licenses. TRO remains in effect for 14 days pending hearing on PI motion. pic.twitter.com/IUOYT8VEA3
— Daniel Wallach (@WALLACHLEGAL) March 20, 2026
Judge Jason Woodbury decided after a request by the Nevada Gaming Control Board. The board said Kalshi is running a type of sports betting without a state license. Because of this, officials reasoned that the company should be subject to the same rules as other gambling businesses.
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Mike Dreitzer, Chair of the Nevada Gaming Control Board, explained the action. He said prediction markets can become illegal if they permit gambling without proper approval. Therefore, the state needs to move to defend the people and enforce the law.
Kalshi enables trading a contract based on real-world events. For example, users can put money on the election results or results of sports. If their prediction is correct they earn money. However, state officials consider this activity to look similar to betting.
Legal Fight Over Prediction Markets Continues
This case is part of an ongoing legal battle between Kalshi and several US states. Regulators are concerned as to whether prediction markets should be held to gambling rules. Meanwhile, their products are legal financial contracts, and not bets, Kalshi says.
The company contends that its business is subject to the regulation of the Commodity Futures Trading Commission. According to Kalshi, these contracts should only be regulated by the federal government. Due to this claim, the company has fought state actions in court numerous times.
The Nevada judge said the state is likely to prevail in the case. For this reason, the court authorised the temporary order to begin immediately. A new hearing is scheduled for April 3, 2026. At that point, the court will determine whether there should be an extended ban.
Other States Also Challenge Kalshi Operations
Nevada is not the only state to take action against prediction markets. A judge in Massachusetts also tried to block Kalshi earlier this year. However, that order was stayed after the company filed an appeal. Because of that appeal, Kalshi was able to continue working there for the time being.
Arizona has gone even more against the company. State officials recently charged criminally, saying Kalshi may be conducting gambling services in violation of the law. As a result, the company has initiated new lawsuits in order to prevent more states from blocking its platform.
The latest decision is important because it requires Kalshi to completely cease to operate in one state. This has not happened before in the past with previous cases. The ruling also followed close on the heels of the company raising about 1 billion dollars in funding.
Because of these legal fights, the future of prediction markets in the United States is still unclear. The next hearing in court will determine whether Kalshi is allowed to return to Nevada or blocked longer.
