Nevada Court Issues TRO Halting Kalshi Operations

A Nevada state court has issued a temporary restraining order barring prediction market platform Kalshi from offering event contracts to users in the state for at least 14 days, marking the first such statewide halt against the company. The First Judicial District Court in Carson City granted the order on Friday, following a lawsuit by the Nevada Gaming Control Board, which alleges that Kalshi operates without a required gaming license. The ruling prohibits trading on contracts related to sports, elections, and entertainment events until a hearing on April 3, when the board will seek a preliminary injunction that could extend the restrictions.

The Nevada Gaming Control Board initiated legal action against Kalshi in February, arguing that the platform's activities constitute unlicensed gambling under state law. Officials contend that Kalshi, which takes commissions on trades, functions as a "percentage game" and fails to comply with requirements such as paying gaming taxes or maintaining a physical presence in Nevada. The board also raised concerns about the platform allowing users under 21 to participate, violating age restrictions. In its order, the court stated that the board...