In short
- Kalshi was temporarily banned in Nevada, suspending his sports, political and entertainment markets for at least 14 days.
- A judge sided with the Nevada Gaming Control Board, indicating that the state could win in the long run.
- The case highlights a major dispute between the states and the CFTC over who regulates the futures markets.
After several months of litigation, Nevada successfully banned Kalshi on Friday – forcing the betting market to not offer any contracts related to sports, politics, and entertainment in the state for the next 14 days.
The temporary restraining order, or TRO, will last until April 3, when there will be a hearing on Nevada’s request for a preliminary injunction in its lawsuit against Kalshi. The preliminary injunction could extend Kalshi’s temporary ban for several months, while the case continues to trial.
The Nevada state judge who issued the injunction on Friday said the Nevada Gaming Control Board is “likely to win on the merits” in its lawsuit against the betting market.
Daniel Wallach, a sports betting attorney, said Decrypt Another challenge that is now blocking Kalshi’s long-term ban in Nevada is a case in the Ninth Circuit Court of Appeals set for April 16, which could end the state’s anti-government lawsuits.
Kalshi has been pushing hard to stop Nevada from banning the platform, even temporarily, for weeks. The campaign faced a major setback yesterday, however, when the Ninth Circuit refused to block Nevada from issuing a temporary restraining order.
“Kalshi has repeatedly claimed that his services are legal in all 50 states, which is not true,” Mike Dreitzer, chairman of the Nevada Gaming Control Board, said in a statement. “Prediction markets, as they facilitate illegal gambling, are illegal in Nevada, and we have a duty to protect the public.”
“We want people in the state to be well-documented,” he continued.
Kalshi, who now its value is $22 billion following the recent $1 billion investment, he declined to comment when reached Decrypt.
Nevada is the first state in the country to ban Kalshi. Some are very close. Kalshi currently, for example, is appealing for a similar moment ban of the tower in Massachusetts.
In the past year, several countries have sued Kalshi and other betting markets, including the platform Polymarket and Crypto.com, arguing that these companies are offering unlicensed sports bets that should be regulated by the government. Forecasting companies have argued that they are no offering sports betting, but, in fact, sports-related contracts, which are regulated at the federal level by the CFTC.
The Trump CFTC has strongly supported this interpretation, conflicting countries should not control the prediction market platforms. Earlier this week, the Arizona attorney general filed a lawsuit cases against Mr. Kalshi for operating an illegal gambling operation and allowing unlicensed betting, CFTC Chairman Mike Selig criticized this.
“This is a jurisdictional dispute and is not appropriate as a lawsuit,” Selig said he said. “The CFTC price It is closely monitoring this and evaluating its options.”
Editor’s note: This article has been edited to reflect that Kalshi declined comment.
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