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Nevada is trying to force prediction market operator Kalshi out of the state after a Ninth Circuit move removed a key obstacle to enforcement.
The Nevada Gaming Control Board says the latest decision clears the path for regulators to act on a court order that blocks Kalshi’s sports-related event contracts. Nevada argues that those contracts function as unlicensed sports wagering under state law.
The fight has become a national test of whether a federally regulated prediction market can sell sports betting-style products across the country, including in tightly controlled gaming states like Nevada.
Nevada files state action after appeals court ruling
Following the Ninth Circuit action, Nevada filed a civil enforcement case in Carson City District Court seeking to block Kalshi from offering sports contracts to Nevada residents. Nevada is also asking for emergency relief, including a temporary restraining order, according to reporting on the filing.
In court papers, the attorney general’s office said Kalshi’s continued operation “harms the state and the public every day and poses an existential threat to the state’s gaming industry.” The filing was signed by Jessica Whalen, the state’s chief deputy solicitor general.
NGCB chairman Mike Dreitzer said the board “continues to vigorously fulfil its obligation to safeguard Nevada residents and gaming patrons, and uphold the integrity of a thriving gaming industry.”
Regulators say Kalshi is taking sports bets without a license
Nevada’s argument is simple. If customers can stake money on the outcome of a sporting event, the state says the product is sports wagering and should be subject to the same rules as any sportsbook.
State officials also say Kalshi does not meet Nevada’s core gaming protections. They point to controls around age verification and integrity standards designed to limit insider betting and reduce match-fixing risks. Nevada has pitched the dispute as a consumer protection issue as much as a regulatory one.
The state’s conflict with Kalshi dates back to March 2025, when the control board issued its first cease-and-desist letter, demanding that Kalshi stop offering sports-event contracts in Nevada. Kalshi went to federal court and initially secured temporary protection, but a federal judge later ruled the company is subject to Nevada gaming rules.
CFTC backs Kalshi as states dig in
Kalshi argues its products fall under federal commodities oversight. The Commodity Futures Trading Commission has supported that position, filing an amicus brief in the Ninth Circuit and saying the agency has exclusive jurisdiction over prediction markets.
The clash is not limited to Nevada. More than 20 states have taken steps to challenge prediction markets offering sports-style contracts, saying they effectively operate gambling products outside state licensing systems.
Critics push back with a broader point. They say sports wagering has existed for decades under state control, long before prediction markets started selling sports-style contracts with trading language. In their view, if staking on a sports outcome counts as gambling, regulators should also be ready to ask where futures trading fits, since it involves putting money on uncertain outcomes and pricing risk.
For Nevada, the message after Tuesday’s ruling is blunt. The state says Kalshi’s sports contracts are betting, and regulators plan to shut them down inside its borders.
Source: Reuters
