A Nevada judge has extended an order blocking prediction market platform Kalshi from allowing residents to trade contracts tied to sports and other events unless the company first obtains a state gaming license. The decision, issued on April 3 in Carson City, marks a notable escalation in efforts by state regulators to control how such platforms operate locally.
Judge Jason Woodbury granted the preliminary injunction requested by the Nevada Gaming Control Board following a hearing.
The move prevents Kalshi, a New York-based firm, from offering these event contracts to users in the state without proper authorization.
During arguments, the company’s legal team insisted that the products qualify as swaps and therefore belong exclusively under the oversight of the U.S. Commodity Futures Trading Commission.
Officials at the CFTC have taken a similar position in separate court proceedings.
Woodbury disagreed, emphasizing the practical similarity between the two activities.
He observed that a person could place a $100 wager on a baseball game through a licensed Nevada gaming operator or reach the same financial outcome by purchasing a comparable contract on Kalshi’s platform.
In the judge’s view, the conduct remains indistinguishable regardless of how it is structured.
He concluded that the activity amounts to gambling, which unlicensed entities are barred from conducting.
The ruling extends a temporary restraining order originally issued on March 20.
That 14-day measure has now been prolonged through April 17, giving the court time to finalize the wording and duration of a longer-term injunction.
Kalshi has not yet issued any public response to questions about the decision.
As reported by Reuters, Nevada now stands alone as the only state to have obtained a court-enforced prohibition against the company’s operations.
Kalshi has become a focal point in a widening legal conflict over the authority of states to supervise prediction markets.
These platforms let users place financial stakes on the expected outcomes of real-world events—everything from sports results and election results to entertainment developments—by buying and selling specialized event contracts.
The Nevada case unfolds against a backdrop of mounting federal-state friction.
On April 2, the CFTC filed lawsuits against three states, challenging their power to impose rules on platforms like Kalshi.
One of those states, Arizona, recently became the first to bring criminal charges against the company for allegedly running an illegal gambling business.
In Massachusetts, a separate court order that had blocked Kalshi from offering sports-related contracts is currently suspended while the firm pursues an appeal.
Legal observers note that these disputes highlight deeper questions about jurisdiction in the fast-growing prediction market sector.
States argue they must protect consumers and maintain control over gambling activities within their borders.
Federal regulators, meanwhile, contend that many of these contracts fall under commodities trading rules.
As courts continue to weigh the competing claims, the Nevada extension could influence how other jurisdictions approach similar regulatory challenges. The coming weeks will likely see further developments as the preliminary injunction takes shape and additional appeals move forward.