Kalshi Temporarily Banned by Judge Order as It Loses Bid to Operate
A Nevada judge has granted an immediate 14-day restraining order against prediction market firm Kalashi, halting its ability to offer contracts on sports and election outcomes. This marks the first time a U.S. state government has successfully forced such operations through court action in this sector following Arizona's recent criminal complaint accusing it of running illegal gambling businesses.
Key Points
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1A judge granted Kalshi's first-ever U.S.-state ban by issuing an immediate two-week temporary injunction prohibiting it from taking bets in Nevada.
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2The dispute centers on whether prediction markets like Kalshi constitute illegal gambling under state law, with the court siding against a company accused of offering derivatives exchanges for sports and elections.
Developments
Nevada temporarily banned Kalshi from offering sports, politics, or entertainment prediction market contracts for at least 14 days after its Gaming Control Board won an injunction case. A judge ruled that California's claim of legal operations in all states is false and noted the state has a duty to protect against unlicensed gambling while awaiting further appeals proceedings scheduled later this month.
A Carson City judge granted Nevadas Gaming Control Board 14-day restraining order against online platform Kalashi. This marks the first time U.S., state banned from operating in its territory after regulators argued that prediction markets facilitate unlicensed gambling without complying with Nevada's regulatory structure for sports betting
The U.S. Ninth Circuit Appeals Court denied an appeals motion from prediction market operator Kalashi seeking to block the enforcement of its gaming regulations in Nevada while awaiting further review on sports result contracts, remanding the case back to state court without explanation and rejecting a request for emergency intervention by federal standards.