U.S. Court Clears Path for Nevada to Take Action Against Kalshi Prediction Market

TheNewsCryptoPublished on 2026-03-20Last updated on 2026-03-20

Abstract

A U.S. appeals court has allowed Nevada to proceed with legal action against prediction market platform Kalshi, denying the company’s request to block a potential temporary restraining order. This could force Kalshi to suspend operations in Nevada for about two weeks until a follow-up hearing. The dispute began in March 2025 when the Nevada Gaming Control Board issued a cease-and-desist order, arguing that Kalshi’s sports-related prediction contracts violate state gambling laws. Kalshi contends that its products are federally regulated by the CFTC, which supports its position. The ruling is a setback for Kalshi and may lead to an imminent temporary ban in the state.

A U.S. appeals court has permitted the state of Nevada to pursue legal action against predictionmarket platform Kalshi. The Ninth Circuit Court of Appeals denied Kalshi’s request to block a possible temporary restraining order (TRO). If approved, Kalshi may have to stop operating in the state for a short time, likely around two weeks, until the next hearing.

What this Case carries

The problem began in March 2025 when Kalshi received a cease-and-desist order from the Nevada Gaming Control Board. Because it believes that sports-related prediction contracts violate state gambling laws, the regulator asked Kalshi to cease providing them. Kalshi countered that federalregulations, not state regulations, govern its products.

With the court decision, Nevada may now issue a temporary restraining order. Legal experts say that this order could come very soon, and Kalshi could be forced to stop operating in Nevada, and the ban could last at least two weeks.

Kalshi warned that it would face serious harm if the court did not intervene. The firm says that it could face multiple legal cases at the same time, and different courts might give conflicting decisions. The Commodity Futures Trading Commission (CFTC) supports Kalshi’s view. The CFTC says it has authority over prediction markets, while states like Nevada believe they also have control, especially for sports-related products.

The court’s decision represents a setback for Kalshi and provides an opportunity for Nevada to take more robust action. The next few days will be important, as a temporary ban on Kalshi in Nevada could be enforced soon. More updates are expected soon as the state court moves forward with the case.

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Related Questions

QWhat action did the U.S. appeals court allow Nevada to take against Kalshi?

AThe U.S. appeals court permitted Nevada to pursue legal action and denied Kalshi's request to block a possible temporary restraining order (TRO).

QWhy did the Nevada Gaming Control Board issue a cease-and-desist order to Kalshi in March 2025?

AThe Nevada Gaming Control Board issued the order because it believes Kalshi's sports-related prediction contracts violate state gambling laws.

QWhat is Kalshi's argument regarding the regulation of its prediction market products?

AKalshi argues that federal regulations, not state regulations, govern its products.

QWhich federal regulatory body supports Kalshi's position in this case?

AThe Commodity Futures Trading Commission (CFTC) supports Kalshi's view, stating it has authority over prediction markets.

QWhat potential immediate consequence could Kalshi face in Nevada following the court's decision?

AKalshi could face a temporary ban on operating in Nevada for at least two weeks if a temporary restraining order is issued.

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