Nevada Court Halts Kalshi Operations for 14 Days

A Nevada state court has issued a 14-day temporary restraining order against prediction market platform Kalshi, forcing the company to halt its operations in the state for sports, election, and entertainment event contracts. The order, issued Friday by the First Judicial District Court, marks the first time a U.S. state has compelled Kalshi to cease such activities, escalating a year-long regulatory dispute over the platform's compliance with local gambling laws.

The ruling follows a decision Thursday by the U.S. Court of Appeals for the Ninth Circuit, which denied Kalshi's emergency request to stay the state proceedings. This allowed Nevada regulators to proceed after the Nevada Gaming Control Board issued a cease-and-desist order in March, accusing Kalshi of offering unlicensed sports betting through its event contracts. Kalshi, which allows users to trade on outcomes such as election results or sports events, argued in court filings that its products fall under the exclusive federal jurisdiction of the Commodity Futures Trading Commission and that any state-imposed restrictions would cause imminent harm to its business.

Gaming attorney Daniel Wallach, who has followed the...