A Nevada judge has extended a ban preventing Kalshi from operating its event-based prediction market in the state. Judge Jason Woodbury ruled that the company’s contracts constitute unlicensed gambling under Nevada law and are indistinguishable from sports betting. The preliminary injunction extends a previous temporary order, barring residents from trading on outcomes like sports and elections. Kalshi argues its products are financial derivatives regulated by the CFTC, whose chairman has vowed to defend the agency’s oversight in court.
A Nevada judge has ruled to extend a ban preventing Kalshi from offering event-based contracts within the state. Judge Jason Woodbury granted a preliminary injunction requested by the Nevada Gaming Control Board, according to Reuters.
The decision extends a temporary restraining order issued on March 20. It will remain in effect through April 17 while the court finalizes longer-term restrictions.
Woodbury rejected Kalshi‘s argument that its contracts are financial derivatives, or “swaps,” under CFTC oversight. He claimed the platform’s activity is functionally the same as placing a wager through a licensed sportsbook.
“No matter how you slice it, that conduct is indistinguishable,” the judge reportedly said. He stated such activity qualifies as gaming under Nevada law and cannot be offered without proper licensing.
This case marks the first time a state has secured a court-enforced ban currently in effect against the company. Last month, Utah lawmakers also passed a bill targeting Kalshi and Polymarket by classifying similar proposition bets as gambling.
The CFTC has asserted its authority over prediction markets. Chairman Michael Selig warned the agency is prepared to defend its jurisdiction in court.
Speaking at an industry conference, Selig said prediction markets can act as “truth machines.” He argued they can produce more transparent and reliable signals about future events than traditional opinion polling.
