A recent development has occurred in the ongoing legal battle between Kalshi, a CFTC-regulated prediction market platform, and Nevada state regulators. Kalshi allows users to trade event contracts on outcomes like elections, sports, entertainment, and more.
Judge Jason Woodbury in Nevada's First Judicial District Court in Carson City issued a temporary restraining order (TRO) against Kalshi.
This order prohibits the company from offering or facilitating event contracts related to sports, elections/politics, and entertainment in Nevada. It also addresses concerns such as allowing wagers from persons under 21, which violates state gaming rules. Some say it disrupts traditional gambling.
It's the latest move in the battle to regulate prediction markets.
A pair of senators from Connecticut and Texas just introduced legislation on the federal level. It would limit certain types of trading activities on online platforms like Kalshi, Polymarket, Fanatics Markets, Prophetx, and DraftKings Predictions.
How Long Does the Restraining Order Against Kalshi Last?
This TRO is temporary—it lasts for 14 days (or up to two weeks) and is effective immediately.
A hearing is scheduled for April 3, 2026, where the court will consider whether to grant a longer-term preliminary injunction that could extend the restrictions through much or all of the ongoing lawsuit.
The ruling came one day after the U.S. Court of Appeals for the Ninth Circuit denied Kalshi's emergency motion for an administrative stay. That stay would have paused the enforcement of Nevada's gaming laws against Kalshi while its federal appeal proceeded.
The denial cleared the path for the state to pursue and obtain the TRO in state court.
The Battle With Kalshi Has Been Ongoing
Nevada's Gaming Control Board and state regulators argue that Kalshi's prediction market event contracts—especially on sports outcomes—constitute unlicensed gambling under Nevada law. They claim Kalshi operates like a "percentage game" by taking commissions, requires a gaming license, and must enforce strict rules such as no under-21 access.
Kalshi contends it is a federally regulated derivatives/commodities platform under the Commodity Futures Trading Commission (CFTC), not traditional gambling, so state gaming laws shouldn't apply. The case has bounced between state and federal courts.
Earlier this month, a federal judge remanded it back to state court, finding no federal preemption or jurisdiction issues strong enough to keep it in federal court.
Nevada Case Part of a Bigger Prediction Market Pushback
This is part of a broader regulatory push against prediction markets offering sports/politics contracts in certain states.
Kalshi has faced similar actions elsewhere, such as a temporary sports contract ban in Massachusetts, which is now on hold during appeal, and criminal charges in Arizona around the same time. Tribal leaders have also expressed their concerns.
The judge in the TRO ruling stated that the Gaming Control Board has a "reasonable likelihood of success on the merits" and that unlicensed operations cause "irreparable and non-compensable" harm, including risks to public interest, underage gambling, and event integrity. Under Nevada law, TROs like this are generally not immediately appealable, so Kalshi must comply and halt those markets for Nevada users in the interim.
What's Next For Kalshi in Nevada?
This marks a significant, if temporary, win for Nevada regulators and highlights tensions between federal commodities oversight and state gambling laws.
The April 3 hearing will be key to determining whether the block becomes more permanent or if Kalshi gets relief.
Prediction markets remain a hot and evolving area; Kalshi continues operating elsewhere and recently raised major funding despite these challenges, but state-by-state enforcement is increasing.
