A federal court in Nevada has partially granted Kalshi’s request for a temporary restraining order and preliminary injunction against local gaming regulators, allowing the prediction market to continue offering sports and election-related event contracts for trading. The company has faced legal battles in Nevada and several other states seeking to curb what they view as unauthorized sports wagering.
Kalshi, a federally regulated prediction market, argues that it is not subject to state-level oversight and can operate under federal regulations. The company has been served with cease-and-desist orders in multiple states, but has filed lawsuits challenging these actions.
The case raises questions about the status quo for legal sports betting in the U.S., which has typically been overseen by state regulators like the Nevada Gaming Control Board. Kalshi, along with other federally regulated platforms like Robinhood and Crypto.com, are able to operate in all 50 states, expanding the market beyond traditional sportsbook operators like DraftKings and FanDuel.
While the court’s decision is a temporary victory for Kalshi, the outcome of the legal battle remains uncertain. The company’s argument centers around federal regulatory authority and the ability to offer event contracts without state intervention. The case highlights the evolving landscape of sports betting and prediction markets in the U.S., with implications for both operators and regulators.
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