Nevada moves toward a long-term ban on Kalshi after a judge ruled its contracts are “indistinguishable” from sports betting.
A Nevada state judge has extended the ban on Kalshi and signaled he will grant the Nevada Gaming Control Board’s (NGCB) request for a preliminary injunction, marking the most advanced court-backed restriction on prediction markets in the U.S.
Nevada remains the only state with a court-enforced, active ban on a prediction market operator.
Judge Jason Woodbury of the First Judicial District Court in Carson City ruled that Kalshi’s event contracts constitute gambling under Nevada law and gave the operator until May 4 to implement geofencing technology to prevent Nevada residents from accessing its platform.
Court Extends TRO, Prepares Preliminary Injunction
The April 3 ruling extends an earlier 14-day temporary restraining order (TRO) issued on March 20. The TRO banned Kalshi from offering sports, election, and entertainment-based contracts in Nevada.
According to the Las Vegas Review-Journal, Woodbury indicated he will issue a preliminary injunction and another 14-day TRO while he finalizes the language. The preliminary injunction would effectively ban Kalshi from offering the contracts until the case proceeds.
The case centers around Kalshi’s argument that its contracts fall under exclusive federal jurisdiction as financial instruments regulated by the Commodity Futures Trading Commission (CFTC).
However, Woodbury rejected that argument. He aligned with NGCB’s position that the contracts function as traditional wagering.
The reality is I could take a $100 right now and walk a couple blocks and put a $100 on the Dodgers to win tomorrow,” Woodbury said.
I could also do that by depositing that money in a licensed operator’s online gaming application and do the same thing. And if it wasn’t restrained, I could also effectively do that with Kalshi with the purchase of a sporting event contract. 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.”
Kalshi Must Geofence Nevada by May 4
The court gave Kalshi until May 4 to implement geofencing or geolocation controls to prevent Nevada users from accessing its platform.
Woodbury said that the company could ask for an extension, but it would need to fully explain why:
Any request for an extension shall include an explanation of the degree to which geolocation or geofencing measures have been implemented, the progress which has been made regarding any implementation that has not yet been completed, the remaining tasks to be completed, and an estimate of the time necessary to complete those tasks.”
The requirement directly undermines one of Kalshi’s central defenses across multiple cases that geofencing would be cost-prohibitive. At the same time, it aligns the platform with compliance standards already used by licensed sportsbooks in the state.
Ban Extends Beyond Sports
While sports event contracts (which the state believes make up 90% of total trading volume) are at the core of the argument, the ban also extends to contracts tied to elections and entertainment.
Nevada Deputy Attorney General Jessica Whelan argued that state law covers wagers on a broad category of “other events.” That includes entertainment and awards-based outcomes.
When you look at entertainment-related contracts, which would be something similar to the ‘South Park’ episode, who will win the Oscars, things basically relating to awards, television, movies, music, that’s the type of thing that we are targeting,” Whelan said.
Momentum Continues to Build for States
Woodbury’s ruling marks the latest of a growing number of decisions favoring state regulators in the ongoing dispute with prediction markets. Most recently, on March 26, NGCB received a preliminary injunction against Coinbase. The state has now received favorable rulings against Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase.
Courts in multiple states — including Ohio, Michigan, Arizona, Maryland, and Massachusetts — have also sided with regulators. Meanwhile, only two rulings in New Jersey and Tennessee have gone in Kalshi’s favor.
Nevada, however, remains the most advanced test case, as it is currently the only state with a court-enforced, active ban.
The decision also comes amid escalating federal involvement as the CFTC filed lawsuits against Illinois, Arizona, and Connecticut. The agency argues that attempts to regulate prediction markets intrude on its authority under the Commodity Exchange Act.
Why This Matters
The Nevada ruling is significant for several reasons. It not only extends an existing ban but also lays out in clear language a framework that other states can use as a model.
A critical part is the court’s conclusion that event contracts are “indistinguishable” from traditional sports betting. This gives regulators in other states an argument to bring enforcement actions.
At the same time, the geofencing requirement puts a significant dent in Kalshi’s defense.
With the court indicating that it will issue a preliminary injunction, it not only provides a template for other states to regulate prediction markets but also gives regulators a clear legal framework to cite in ongoing court battles.
The post Nevada Court Extends Kalshi Ban, Signals Preliminary Injunction appeared first on Gambling Insider.
