Nevada court suspends Kalshi's operations for 14 days and bans betting.
The Nevada Gaming Control Board (NGCB) obtained a court order suspending the activities of the Kalshi platform in the state for 14 days. The ruling was issued by the Nevada First Judicial District Court this Friday (March 20th), by Judge Jason Woodbury. The measure prohibits the company from offering contracts related to sporting, political, and entertainment events, and also prevents the marketplace from accepting bets from individuals under 21 years of age in Nevada.
The decision marks the first time a prediction marketplace platform has been forced to halt operations by state order in the United States. The temporary restraining order remains in effect until April 3, when a preliminary injunction hearing is scheduled in state court in Carson City.
NGCB obtains injunction against forecasting platform.
The court order fulfills a request filed by the regulatory body on March 12, 2026. The court granted the request for preliminary injunction and provisional relief presented by NGCB.
“The plaintiff’s request for a preliminary injunction and provisional relief, filed on March 12, 2026, is granted insofar as it requests the issuance of a preliminary injunction order to prohibit Kalshi from offering contracts based on events related to sports, elections, and entertainment in Nevada and from allowing its marketplace to accept bets on these events from individuals under the age of 21 in Nevada,” according to the decision.
Nevada law stipulates that temporary restraining orders cannot be challenged. Kalshi is prohibited from operating in the state during the specified period.
A series of legal defeats precedes the suspension.
The measure was issued a day after the Ninth Circuit Court of Appeals denied Kalshi a stay that would have prevented Nevada from banning the forecasting market operator. The Thursday before the ruling, the Ninth Circuit Court of Appeals rejected the company's attempt to stay proceedings in a lower court.
The decision sent the case back to the lower federal court. This move paved the way for state regulators to move forward with measures against the platform.
The previous month, the same appeals court had ruled in favor of the NGCB. The decision authorized the regulatory body to proceed with the civil action against Kalshi. This ruling came after U.S. District Judge Andrew Gordon revoked an injunction that had previously allowed Kalshi to operate in Nevada.
State alleges illegal sports betting operation.
Nevada maintains that Kalshi operates unlicensed sports betting. State authorities argue that the practice could harm local consumers and regulated gaming companies operating in the state. The state also alleges that it suffers "irreparable and non-compensable" damages and that the NGCB is unable to protect minors from gambling and ensure the integrity of the competition, as is currently done by licensed betting houses.
The NGCB criticized Kalshi for expanding its sports betting offerings while facing lawsuits from Nevada and other states. State authorities maintain a firm stance against the operation of prediction markets within their territory.
The court's decision came days after Arizona filed a criminal complaint with 20 charges against Kalshi. This is the first time a forecasting market company has faced criminal charges.
The legal dispute is part of a year-long battle between the Gaming Control Board, Kalshi, and other prediction market operators. Nevada gaming regulators filed the lawsuit in state court in February against Kalshi as part of their ongoing battle with prediction market companies that Nevada argues should be licensed and regulated by the state.
Kalshi defends federal authorization.
Kalshi maintains that it derives its authority from the Commodity Futures Trading Commission (CFTC), which gave its approval to operators that have proliferated in states across the country. Opponents argue that Congress never intended for the CFTC to permit sports betting and gambling, which fell under the jurisdiction of state regulation.
“Kalshi has repeatedly claimed that its operations are legal in 50 states, which is clearly not true,” said Nevada Gaming Control Board Chairman Mike Dreitzer in a statement issued Friday. “Prediction markets, to the extent that they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public. We want people in the state to gamble safely at a licensed establishment. Nevada’s public policy, as expressed by the Legislature, is that the gaming industry is vitally important to the state’s economy and the general well-being of its inhabitants and therefore must be licensed, regulated, and assisted to protect public health, safety, morals, good order, and the general welfare of the state’s inhabitants.”
Dreitzer stated that the Board has taken decisive action in recent months to halt the operation of prediction markets in the state. With Friday's decision, the Board successfully restricted the operation of all unlicensed prediction markets known to operate in Nevada, Dreitzer said.
Kalshi declined to comment on Friday. Previously, Kalshi spokeswoman Elisabeth Diana defended the operator in its ongoing case with Nevada. “Prediction markets are also operating within the regulatory framework. They have consumer protections very similar to those of the stock market. And regarding the economic impact, last time I checked, some states are reporting record gaming revenues,” Diana said.
Court assesses likelihood of success for regulatory body.
The Nevada First Judicial District Court noted in its decision that NGCB “has a reasonable probability of succeeding on the merits.” The assessment indicates that, should the trial occur, the regulatory body will likely be able to convince a judge or jury that Kalshi is operating in Nevada in violation of state law.
The court highlighted that the state's complaint against Kalshi "proves that gambling in Nevada is extensively and rigorously regulated." The court added that strict regulation is in the public interest. The decision reinforces that gambling in the state can only be conducted by entities with the proper licenses issued by Nevada's regulatory bodies.
Contracts classified as gambling
The court determined that the sporting event contracts offered by Kalshi fall under the legal definition of operating a "sports betting pool" under Nevada law. The court noted that the company receives a commission for negotiating these contracts.
Based on this commissioning structure, the decision concluded that Kalshi is operating a “percentage game,” as defined by Nevada state law. This legal classification has direct implications for licensing requirements to operate in the state.
The judicial analysis indicates that, should the case proceed to trial, the Nevada regulatory body has sufficient arguments to convince the court that Kalshi is violating state law. The assessment considers the nature of the company's operations and the state's current regulatory framework.
States recalibrate enforcement strategy
Florida gaming attorney Daniel Wallach noted that Kalshi could petition the U.S. Supreme Court for an administrative order allowing it to continue operating in Nevada. “The decision reinforces that states have to take direct action within the state judicial system and avoid being dragged into time-consuming federal court proceedings,” Wallach said.
“This is now the third temporary restraining order that the Nevada Gaming Control Board has secured in three cases against Kalshi, Polymarket, and Coinbase. In contrast, sending cease and desist letters to Kalshi is a trigger point for Kalshi to file a federal lawsuit that frustrates state enforcement. States are beginning to recalibrate their approach and use civil or criminal actions in state court to go directly against Kalshi through state law. That’s where these cases belong,” Wallach stated.
Nevada is joining Massachusetts, which obtained a preliminary injunction against Kalshi, Wallach said. "States are learning from Massachusetts's example and suing first," Wallach said.
