‘Illegal in Nevada’: Judge blocks Kalshi from dealing in sports betting in the state

LAS VEGAS (KLAS) — A temporary restraining order was issued on Friday to stop Kalshi, a major player in the prediction markets, from operating in Nevada.

State gaming regulators have said that “futures trading” by Kalshi and other companies is just a smokescreen for sports betting operations that must adhere to Nevada’s regulations, including the need for a license and reviews of executives’ suitability.

“Kalshi has repeatedly stated that its operations are legal in 50 states, which is clearly not true,” Mike Dreitzer, chairman of the Nevada Gaming Control Board, said in a Friday news release.

“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 and the prediction markets don’t have the same oversight at the federal level that they would as licensed operators in Nevada and other states. The situation opens the door for abuses that could damage the integrity of sports betting in the state.

Earlier this week, Arizona filed criminal charges against the company. It was the first state to take that step.

In Nevada, agreements to wait on court action were in place, but now the state is taking the dispute to the next level. In early February, officials in the Silver State filed for an injunction to stop Coinbase from offering event contracts through its app in the state.

“Nevada’s public policy, as expressed by the Legislature, is that the gaming industry is vitally important to the economy of the state and the general welfare of the inhabitants and therefore must be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and general welfare of the inhabitants of the state,” according to the news release.

Bill Miller, president and CEO of the American Gaming Association, supported Nevada’s action in a social media post on Friday.

“Nevada and the Nevada Gaming Control Board’s successful effort to secure a Temporary Restraining Order against Kalshi is a critical step in addressing sports event contracts offered by prediction markets,” Miller said.

“We strongly agree with Chairman Dreitzer’s remarks today that prediction markets are offering illegal sports wagers in Nevada and applaud the state’s decisive enforcement to uphold its laws, protect its consumers and defend the integrity of its regulated market,” Miller said.

When reports surfaced that Kalshi had $871 million in Super Bowl event contracts in February, Rep. Dina Titus (D-Nev.) introduced federal legislation on the topic.

“Prediction markets should not be able to circumvent state gaming laws,” Titus said. “Consumers deserve transparency, accountability, and protection against such predatory practices.”

The restraining order was issued by Nevada’s First Judicial District Court in Carson City.

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