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Federal Judge Lets Nevada Enforce Ban on Kalshi’s Sports Event Contracts

The reversal clears enforcement by Nevada regulators, with Kalshi signaling a Ninth Circuit appeal.

Overview

  • U.S. District Judge Andrew P. Gordon dissolved his April preliminary injunction, requiring Kalshi to pause sports event contracts in Nevada.
  • In a 29-page opinion, the judge said Kalshi’s reading of the Commodities Exchange Act would improperly federalize sports betting and cannot be sustained.
  • Nevada’s Gaming Control Board plans to publish guidance instructing licensees to avoid dealings with Kalshi and similar prediction markets.
  • Gordon previously denied a similar bid by Crypto.com in October, and on Tuesday he ruled against Robinhood’s request to let its users access Kalshi’s sports contracts in the state.
  • Kalshi faces cease-and-desist orders and lawsuits in multiple jurisdictions, and industry players such as DraftKings and FanDuel withdrew Nevada applications after the regulator’s warning; Kalshi says it will appeal to the Ninth Circuit.