A temporary restraining order banning prediction market Kalshi from offering sports, election and entertainment event contracts in Nevada has been granted by a judge in Carson City.
District Court Judge Jason Woodbury on Friday granted the Nevada Gaming Control Board’s motion for a temporary restraining order blocking Kalshi from operating in the state.
A hearing on an injunction is scheduled for April 3 in First Judicial District Court in Carson City.
“Kalshi has repeatedly stated that its operations are legal in 50 states, which is clearly not true,” Nevada Gaming Control Board Chairman Mike Dreitzer said in a release announcing the decision. “Prediction markets, to the extent that they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public. We want people in the state to bet safely on a licensed book.”
The decision came after a fast-moving court case that began Thursday.
An appeals court denied a request for a stay by Kalshi that would have allowed it to continue writing event contracts on sports results in Nevada.
The Ninth Circuit Court on Thursday rejected an emergency attempt by Kalshi to block the state of Nevada from enforcing its gaming rules while an appeal was heard.
Kalshi’s next move could be to seek a U.S. Supreme Court review, but it’s unclear whether Kalshi, who has been in litigation with the state for a year, will take that step.
Legal scholars have said they expect the ongoing battle between prediction markets and state gambling regulators across the country to ultimately be decided by the Supreme Court.
Kalshi had argued that a lawsuit filed by the Carson City Board of Control should be heard in federal court, but the U.S. District Court in Nevada rejected Kalshi’s argument and sent the case back to state court.
Kalshi then took the decision to the U.S. Court of Appeals for the Ninth Circuit, requesting a stay of execution while the appeal was pending.
Without explanation, the appeals court rejected the Kalshi argument in a one-sentence response and remanded the case to the Carson City court.
Regulators across the country have taken up a similar strategy of suing prediction markets in state rather than federal courts, finding that state courts are more sympathetic to the enforcement of state gambling laws.
Representatives for New York-based Kalshi could not be reached for comment on their next legal move.
Representatives for the review board did not immediately respond to a request for comment on the appeals court’s decision.
Florida gambling attorney Daniel Wallach of Wallach Legal wrote on X-Thursday that the Supreme Court appears to be Kalshi’s next option.
“Barring SCOTUS’s emergency intervention, a TRO (temporary restraining order) issued by a Nevada state court against Kalshi appears imminent,” Wallach said on X.
This is a development story. Check back for updates.
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