Kalshi Takes Initial State Action by Limiting Nevada Markets After Court Decision
Nevada scored a major legal victory against Kalshi, forcing the exchange to restrict certain trades in the state. Last March, Nevada was the first to issue a cease-and-desist to Kalshi, and now, a court has granted a 14-day temporary restraining order requiring Kalshi to block its sports, entertainment, and election contracts. The restrictions took effect on Saturday, preventing Nevada users from trading in those categories, citing the court order. Kalshi Nevada Markets
Kalshi stated, “We disagree with those restrictions, but as a law-abiding company, we’re following them,” and expressed confidence in their legal position. The Nevada Gaming Control Board (NGCB) considers such event contracts a form of wagering, and with Kalshi temporarily halted, Nevada joins other platforms like Polymarket, Robinhood, Coinbase, and Crypto.com in being restricted.
Kalshi reportedly used user registration data to enforce these restrictions, barring Nevada residents but possibly allowing out-of-state visitors in Nevada to trade. Some categories blurred boundaries, with users able to trade on topics like Saturday Night Live or political mentions, despite restrictions on sports and entertainment.
Industry leaders support Nevada’s stance. The American Gaming Association (AGA) praised the enforcement, emphasizing the importance of protecting consumers and the integrity of regulated markets. The move comes amid declining sports betting revenue and sluggish tourism, with Nevada’s Super Bowl handle dropping to a decade.
Read also: Panama Implements New Measures to Tackle Gambling Addiction
Legislation is heating up, with bills like the Prediction Markets Are Gambling Act, introduced by Senators Schiff and Curtis, aiming to ban certain event contracts. Kalshi’s CEO criticized such efforts, arguing they push prediction markets offshore. Other bills from lawmakers seek to clarify existing laws, which already prohibit unlawful betting activities, though recent legal setbacks suggest the industry’s position may be shifting. Kalshi Nevada Markets
