Overview

• Kalshi secured a temporary restraining order and preliminary injunction from a federal judge, enabling it to maintain its sports prediction markets in Nevada during ongoing litigation.
• The Nevada Gaming Commission's counterclaims to immediately halt Kalshi's operations were rejected by the court, marking a significant procedural win for the company.
• Kalshi argues that its status as a federally regulated platform under the CFTC and Commodity Exchange Act exempts it from state gambling laws, a claim central to the legal dispute.
• Six states, including Nevada, New Jersey, and Illinois, have issued cease-and-desist orders, asserting that Kalshi's sports markets constitute unlicensed gambling under state law.
• The outcome of the legal battle could set a precedent for whether prediction markets are regulated federally as derivatives or fall under state gambling laws, potentially reshaping the U.S. sports betting landscape.