Nevada Takes Legal Action to Stop Kalshi’s Sports Betting Platform
Nevada gaming officials have filed a lawsuit to prevent Kalshi, an online prediction market, from offering contracts that let residents bet on sports such as football and basketball. This case is part of a larger battle over whether state regulators can oversee companies that allow financial bets through digital markets.
Federal Support for Kalshi
The Commodity Futures Trading Commission (CFTC) has backed Kalshi, asserting it holds sole jurisdiction over such markets.Court Dynamics
Kalshi attempted to stop Nevada from suing, but a federal appeals court denied the request to pause an earlier judge’s order that lifted an injunction blocking enforcement.
If Nevada prevails, it will become the second state to block Kalshi from providing sports contracts after Massachusetts did so earlier this month.
Nevada’s Position
Nevada argues these contracts constitute wagering under state law, requiring Kalshi to hold a gambling license.
The state points out that Kalshi has not complied with rules prohibiting individuals under 21 from betting and mandates safeguards against insider bets or match‑fixing.Other Affected Firms
Nevada courts have also barred other prediction market firms, Coinbase and Polymarket, from offering contracts.Kalshi’s Countermove
Kalshi has asked to move the case to federal court, claiming the matter concerns whether it falls under the CFTC’s exclusive jurisdiction. The company insists its contracts are swaps—a type of derivative that the federal regulator controls.Implications
The outcome will shape how states can regulate online betting platforms and whether federal agencies have the final say.
