A U.S. District Court in Nevada has granted Kalshi, a crypto-based prediction market, a preliminary injunction, temporarily halting the state’s efforts to block its operations.
The ruling, issued by Judge Andrew P. Gordon on Tuesday, allows Kalshi to continue offering sports event contracts in Nevada while its legal challenge against the state proceeds. According to Front Office Sports, Judge Gordon sided in part with Kalshi in its lawsuit against Nevada’s cease-and-desist order. The Nevada Gaming Commission’s request for a restraining order to immediately shut down Kalshi’s sports markets was denied.
A more detailed written ruling is expected later, providing further insight into the court’s decision-making process.
Kalshi operates as a Commodity Futures Trading Commission (CFTC)-regulated exchange. This regulatory status was a key factor in the company’s recent legal victory against the CFTC last year, where it won the right to list political event contracts. Following this success, Kalshi expanded into sports prediction markets, offering contracts for events like the Super Bowl and March Madness in partnership with platforms such as Robinhood.
The company’s expansion into sports prediction markets has not been without challenge. Several states, including Nevada and New Jersey, have taken issue with Kalshi and its partners, alleging that they are offering unlicensed gambling products. In response to these challenges, Kalshi has filed lawsuits in federal courts against both Nevada and New Jersey, asserting its rights as a regulated exchange.
Kalshi’s co-founder, Tarek Mansour, publicly expressed gratitude for the court’s decision via social media, highlighting Kalshi’s regulated status. The company also released a statement noting the court’s recognition of its status and its ability to continue operating in Nevada.