A temporary restraining order has been issued by Judge Jason Woodbury of the Carson City District Court, preventing Kalshi from conducting business in Nevada for a period of 14 days. This decision aligns with a motion from the Nevada Gaming Control Board, which argues that the company's event contracts may breach state gambling regulations.
Kalshi's legal troubles intensified after a federal appeals court rejected its emergency request to halt ongoing proceedings, thereby permitting state authorities to act. In his ruling, Judge Woodbury noted that Kalshi is prohibited from offering contracts related to sports, elections, and entertainment, categorizing them as a "sports pool" under Nevada law, for which the company lacks the necessary licensing.
The state gaming board had initiated legal action against Kalshi last month, claiming the firm must obtain a state license for its operations. In response, Kalshi contended that its contracts fall under the jurisdiction of the Commodity Futures Trading Commission, which supports prediction markets facing similar allegations across various states.
A hearing is set for April 3 to evaluate a motion for a preliminary injunction against Kalshi. The company's ongoing legal battles include actions in several states that challenge its licensing status.