A Nevada judge has temporarily barred Kalshi from operating in the state, ruling that the company’s event contracts likely violate state gambling laws.
Carson City District Court Judge Jason Woodbury granted a 14-day restraining order at the request of the Nevada Gaming Control Board. He found that Kalshi’s sports, election, and entertainment-related contracts constitute an unlicensed “sports pool” under Nevada law.
Kalshi contends its platform falls under federal oversight by the Commodity Futures Trading Commission. But Judge Woodbury rejected that argument, stating current legal precedent does not support federal preemption in this context.
The court will hold a hearing on April 3 to consider a longer-term injunction. This marks the latest legal setback for Kalshi, which also faces enforcement actions in Arizona, Massachusetts, and Iowa.