Nevada Judge Extends Ban on Kalshi Prediction Market

Ruling prevents Kalshi from offering event-based contracts in the state without a gaming license

Apr. 4, 2026 at 5:29pm

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A Nevada judge has extended a ban on prediction market operator Kalshi from offering event-based contracts that would allow the state's residents to place bets on sports and other matters without the company obtaining a gaming license. The judge ruled that Kalshi's contracts constitute illegal gambling activity that requires a state-issued license, rejecting the company's argument that the contracts are 'swaps' under federal jurisdiction.

Why it matters

This ruling is part of an escalating legal battle over the power of states to regulate prediction markets like Kalshi, which allow users to place financial bets on the outcomes of various events. Nevada is the only state so far to secure a court-enforced ban against Kalshi, setting a precedent that could impact the company's operations in other states.

The details

Judge Jason Woodbury at the end of a court hearing in Carson City said he would issue a preliminary injunction sought by the Nevada Gaming Control Board that will bar Kalshi from offering such contracts in the state without a gambling license. A lawyer for Kalshi argued that the contracts constitute 'swaps' under the jurisdiction of the U.S. Commodity Futures Trading Commission, but the judge was unconvinced, saying the contracts were indistinguishable from illegal gambling.

  • On March 20, Judge Woodbury issued a 14-day temporary restraining order barring Kalshi from offering sports, elections and entertainment-related event contracts.
  • The extended preliminary injunction will remain in place beyond April 17.

The players

Kalshi

A New York-based prediction market operator that allows users to place financial bets on the outcomes of various events.

Nevada Gaming Control Board

The state regulatory agency that sought the injunction against Kalshi, arguing its event-based contracts constitute illegal gambling activity that requires a state-issued license.

Judge Jason Woodbury

The Nevada judge who issued the preliminary injunction against Kalshi, ruling that the company's contracts are indistinguishable from illegal gambling.

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What they’re saying

“No matter how you slice it, that conduct is indistinguishable. So I find based on the arguments that have been presented that it is a gaming activity that is prohibited for any non-licensee to engage in.”

— Judge Jason Woodbury, Nevada Judge

What’s next

The judge's extended preliminary injunction will remain in place beyond April 17, preventing Kalshi from offering event-based contracts in Nevada without a state-issued gaming license.

The takeaway

This ruling highlights the ongoing legal battles between states and prediction market operators like Kalshi over the regulation of these platforms. Nevada's success in securing a court-enforced ban sets a precedent that could influence how other states approach the issue of policing prediction markets within their borders.