Kalshi has halted offering sports and election events in Nevada, marking the first state to force the platform to geofence its core products.
Kalshi has stopped offering contracts for sports, entertainment, and election events in Nevada after a state court issued a temporary restraining order (TRO) against the company. That marks the first state Kalshi has been forced to geofence its core contracts amid a growing number of legal challenges to its event-based products.
Nevada Court Orders Immediate Halt to “Unlicensed Gaming”
The Nevada Gaming Control Board (NGCB) announced on March 20 that a state court granted its request for a TRO. It prohibits Kalshi from offering contracts for sports, elections, and entertainment events within the state.
The regulator has long argued that Kalshi has been operating without a Nevada gaming license, in violation of multiple statutes, and that its contracts fall under the state’s definition of wagering.
The Board considers the offering of sports event contracts… to constitute wagering activity under NRS 463.0193 and 463.01962.”
Chairman Mike Dreitzer also pushed back on Kalshi’s long-standing legal position.
Kalshi has repeatedly stated that its operations are legal in 50 states, which is clearly not true.”
“Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public. We want people in the state to wager safely at a licensed book.”
Kalshi Complies, Restricts Core Markets
Following the order, Kalshi confirmed it has restricted access to affected markets for Nevada users. In an email sent to Nevada users, the company said:
We’ll cut to the chase. Due to a temporary court order, our markets related to sports, entertainment, and elections are being restricted in Nevada.”
Kalshi said that users can still sell pending positions or let them resolve, but cannot open new ones. The company said that other categories, including crypto, weather, and world news, remain available.
Kalshi also emphasized that the restriction is temporary and geographically isolated.
This situation is unprecedented — Nevada is currently the only state with temporary restrictions in effect due to a court order. We disagree with those restrictions, but as a law-abiding company, we’re following them. We’re confident in our legal position, and we’ll continue to fight for your right to trade the same products that are available in 49 other states.”
In the email, Kalshi urged users in Nevada to push back politically.
We built Kalshi to give everyone fair and open access to markets. Citizens of Nevada should not be forced into a business model designed to penalize winners and maximize user losses.”
“You can help by contacting your Nevada representative and letting them know you support open access to regulated prediction markets in Nevada.”
TRO Extends for 14 Days
The TRO forces Kalshi out of Nevada for at least 14 days, with a hearing set for April 3.
Kalshi could resume offering restricted contracts if it prevails at the April 3 hearing. If the court extends the TRO into a preliminary injunction, the restrictions could remain in place pending further litigation. If it does not, Kalshi could appeal, and the restriction may be lifted pending further proceedings.
The case could also draw involvement from the CFTC, given Kalshi’s position that its contracts fall under federal derivatives regulation.
Industry observers have noted that Nevada could also pursue criminal charges under existing law, in addition to the TRO. Under NRS 463.160, operating unlicensed gambling is a felony, punishable by fines of up to $50,000 and imprisonment of up to 10 years.
Legal Pressure Mounts Across Multiple Fronts
Nevada’s TRO is landing amid broader legal challenges for Kalshi across multiple fronts.
Arizona recently became the first state to pursue criminal charges against Kalshi. On the same day, a federal judge denied Kalshi’s request for emergency relief and raised questions about whether the case belongs in federal court at all.
Elsewhere, recent comments by Florida Gov. Ron DeSantis suggest the state is examining whether prediction markets like Kalshi comply with existing laws. If Florida pursues legal action, it will join a growing list of states involved in litigation with prediction markets.
At the same time, on March 20, Kalshi co-founders Tarek Mansour and Luana Lopes Lara, along with the company’s Chief Compliance Officer, Joshua Beardsley, were named in a federal class-action lawsuit in Georgia. The suit adds to a growing list of class-action complaints.
While many of those civil cases remain in early stages, they add to the growing legal scrutiny of prediction markets and their positioning relative to traditional gambling products.
The post Kalshi Halts Sports, Election Markets in Nevada Following TRO appeared first on Gambling Insider.
