Kalshi wins injunction against Nevada in Federal Court

A U.S. District Court in Nevada has granted Kalshi a preliminary injunction, temporarily halting the state’s efforts to block the crypto-based prediction market from operating. 

The ruling allows Kalshi to continue offering sports event contracts in Nevada while its legal challenge against the state proceeds.

Judge Andrew P. Gordon issued the decision Tuesday, siding in part with Kalshi in its lawsuit against Nevada’s cease-and-desist order, according to Front Office Sports reporting.

 The Nevada Gaming Commission’s request for a restraining order to immediately shut down Kalshi’s sports markets was denied. 

A more detailed written ruling is expected later.

Kalshi, which operates as a Commodity Futures Trading Commission (CFTC)-regulated exchange, previously won a legal battle with the CFTC last year over the right to list political event contracts. It has since expanded into sports prediction markets, including Super Bowl and March Madness offerings in partnership with Robinhood.

The company now faces legal challenges from states that claim Kalshi and partners like Robinhood and Crypto.com are offering unlicensed gambling products. In response, Kalshi has filed lawsuits in federal court against Nevada and New Jersey.

“Today, the Federal Court in Nevada granted Kalshi’s preliminary injunction and blocked the State from trying to prevent Kalshi from offering prediction markets,” the company said in a statement. 

Co-founder Tarek Mansour also thanked the court via X, citing Kalshi’s regulatory status.