A Nevada judge has reportedly extended the ban preventing Kalshi from offering event-based contracts in the state, ruling that the products are unlicensed gambling under state law.
According to Reuters, Judge Jason Woodbury said at a hearing in Carson City on Friday that he would grant a preliminary injunction requested by the Nevada Gaming Control Board, preventing the company from allowing residents to trade on results such as sports, elections and entertainment events without a gaming license.
The decision extends a temporary restraining order issued on March 20, which will remain in effect until April 17, until the court finalizes long-term restrictions.
New York-based Kalshi has argued that its contracts are financial derivatives, specifically “swaps,” which fall under the special oversight of the Commodity Futures Trading Commission (CFTC).
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Judge says Kalshi mirrors sports betting contracts
According to Reuters, Woodbury rejected Kalshi’s argument and claimed there was a direct comparison between traditional sports betting and Kalshi’s platform. According to the report, he said that placing a bet through a licensed sportsbook and purchasing a contract tied to the outcome of a game is functionally the same.
“No matter how you cut it, that conduct is indistinguishable,” the judge reportedly said, adding that such activity qualifies as gaming under Nevada law and cannot be offered without a proper license.
The case marks the first time a state has currently imposed court-enforced sanctions against the company.
Last month, Utah lawmakers also passed a bill targeting Kalushi and PolyMarket, which classifies proposition-style bets on in-game events as gambling, aiming to prevent such offerings in the state.
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CFTC vows court fight over forecast market oversight
The CFTC has asserted authority over prediction markets, with Chairman Michael Selig warning that the agency is prepared to defend its jurisdiction in court against any challenges from states or other regulators.
Speaking at an industry conference last month, Selig said prediction markets could act as “truth machines,” arguing that when participants put money behind their ideas, these markets could generate more transparent and reliable signals about future events than traditional opinion polling.
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