Posted on: March 20, 2026, 01:39h.
Last updated on: March 20, 2026, 01:39h.
- Nevada court issues 14-day temporary restraining order against Kalshi
- The order bars from Kalshi from offering entertainment, political and sports event contracts in the state
- It’s the first time a state has forced a prediction market to halt operations
The First Judicial District Court of Nevada handed down a 14-day restraining order against Kalshi, barring the prediction market operator from offering entertainment, political and event contracts in the state.
In the long line of state cases brought against the company and its rivals, the Nevada decision breaks new ground because it’s the first in which a state has forced Kalshi to halt operations, albeit temporarily. The temporary restraining order was granted about a month after the Nevada Gaming Control Board (NGCB) filed a civil enforcement action against Kalshi in hopes of pushing the company out of the state.
Plaintiff’s application for temporary restraining and motion for preliminary injunction filed on March 12, 2026 is granted insofar as it requests issuance of a temporary restraining order to prohibit Kalshi from offering a derivatives exchange and prediction market which offers event-based contracts relating to sports, election, and entertainment related events,” according to the decision.
Under Nevada law, temporary restraining orders cannot be appealed, meaning Kalshi is essentially out of business in the state for at least 14 days.
How the Kalshi/Nevada Battle Evolved
On Thursday, the Ninth Circuit Appeals Court rejected Kalshi’s effort to stay a lower court proceeding. Put simply, that court’s decision sent the case back to a lower federal court, opening the door for Nevada regulators to move against the prediction market operator.
Last month, the appeals court also sided with the NGCB, allowing the regulator to pursue the civil enforcement action against Kalshi. The appeals court’s decision arrived after U.S. District Judge Andrew Gordon lifted an injunction which allowed Kalshi to operate in Nevada.
Nevada has taken a consistent, hard line in its efforts to block prediction markets from operating there. The state contends Kalshi is offering what amounts to be sports betting and doing so without a license, potentially harming Nevada consumers and the many regulated gaming companies operating there.
The NGCB has also called out Kalshi for expanding its sports menu even as Nevada and other states pursue litigation against the company. The First Judicial District Court’s decision arrived just days after Arizona filed a 20-count criminal complaint against Kalshi — the first time a prediction market company has been hit criminal charges.
Court Says NGCB Was Likely to Succeed on Merits
In its decision, the First Judicial District Court of Nevada notes that the NGCB “is reasonably likely to succeed on the merits.” Removing the legal lingo, the implication is that had a trial come to pass, the regulator likely would have been successful in convincing a judge or jury that Kalshi is operating in Nevada in violation of state law.
The court points out that the state’s complaint against Kalshi “establishes that gaming in Nevada is expansively and strictly regulated,” adding that strict regulation is in the public interest and that gaming in the state can only be conducted by entities with related licensing from Nevada regulators.
The court also notes sports event contracts, such as those offered by Kalshi, qualify as operation of a “sports pool” under Nevada law and because Kalshi is taking a commission on the trading of those contracts, it’s operating a “percentage game” as defined by Nevada law.
Source link
