Kalshi, a supplier of prediction market services, has had its ban maintained by a state judge in Nevada. The State of Nevada claims that the services being provided by Kalshi are gaming like and fall under the regulations governing gambling.
The decision made by Judge Jason Woodbury of the First Judicial District Court located in Carson City was to issue a preliminary injunction against Kalshi from offering to sell contracts based on sporting events, entertainment events of any kind, and elections without a gaming license from the State of Nevada.
The basis for Judge Woodbury’s issuance of a TRO was the determination by the Court that purchasing contracts related to a specific sporting event closely resembles betting through a licensed casino or bookie. The Court’s ruling also questions Kalshi’s argument that its offerings constitute federally regulated “swaps” under the authority of the Commodity Futures Trading Commission.
Commenting on the development, U.S. Gaming Law and Sports Betting Attorney Daniel Wallach described the ruling as a significant milestone for state regulators and wrote on LinkedIn:
Big win for Nevada, which now joins Massachusetts as the first two states to secure a preliminary injunction vs Kalshi.
The legal environment throughout the Country continues to be highly fragmented www.bcljs.com, with Nevada being one of only a few States with an active court-ordered prohibition against offering Kalshi services. However, the legal environment continues to be fragmented in nature.
The Nevada Council on Problem Gambling and the Dr. Robert Hunter International Problem Gambling Centre filed amicus briefs with the Ninth Circuit Court of Appeals regarding the risks associated with the accessibility, transaction speed, and product design of the products and services that are available through Kalshi.
