Nevada Gaming Regulators Move to Block Kalshi Prediction Markets

Nevada gaming authorities have notified federal appeals courts of impending civil enforcement action against Kalshi, escalating a high-stakes legal confrontation over prediction market regulation. The state intends to proceed with enforcement after a federal injunction blocking such action was lifted.

Chief Deputy Solicitor General Jessica Whalan communicated Nevada’s position to the Ninth Circuit, stating continued inaction would permit Kalshi to operate despite causing “irreparable harm to Nevada, its gaming industry, and the public.” The state contends that Kalshi’s sports-event contracts constitute gambling activities subject to Nevada law.

The dispute originated last year when Nevada issued a cease-and-desist order demanding Kalshi halt operations within state boundaries. Kalshi challenged this in federal court, temporarily blocking enforcement while pursuing claims of federal preemption under commodity trading regulations.

In January, District Judge Andrew Gordon removed that protection, determining Kalshi was unlikely to prevail in arguments that federal law supersedes state gaming regulations. This ruling challenged the foundational premise that federally regulated event contracts are immune from traditional gambling oversight.

Despite pending appeals, Kalshi has accelerated marketing efforts and operational expansion, characterizing its services as legally available nationwide. Nevada regulators interpret these activities as necessitating immediate intervention to maintain regulatory consistency.

The confrontation represents a broader industry flashpoint as prediction markets proliferate across the United States. State gaming commissions increasingly question whether federal commodity classifications should exempt these platforms from established gambling enforcement frameworks.

Nevada’s determination to pursue civil enforcement through state courts could establish critical precedent regarding jurisdiction over event-contract platforms, potentially reshaping the regulatory landscape for prediction markets operating within regulated gambling jurisdictions.