The U.S. state of Nevada has filed a civil lawsuit against prediction market platform Kalshi. This action follows a federal court’s denial of Kalshi’s request to block the state’s gaming regulator. The Nevada Gaming Control Board alleges Kalshi is offering unlicensed sports wagering in violation of state law, a charge Kalshi contests by asserting it falls under exclusive federal regulatory jurisdiction.
A federal appeals court has cleared the way for Nevada to sue Kalshi over its sports prediction markets. The Nevada Gaming Control Board promptly filed a civil enforcement action, stating it seeks to block the company from offering unlicensed wagering.
Kalshi quickly moved to have the case heard in federal court, filing a motion repeating its argument of exclusive federal jurisdiction. The company is regulated by the Commodity Futures Trading Commission, not state gaming authorities.
The regulator argues Kalshi’s contracts allow users to wager on sports outcomes and therefore require a state license. Kalshi contends this claim forces an improper interpretation of federal commodity exchange laws.
In a related case, CFTC Chair Mike Selig said his agency filed an amicus brief supporting Crypto.com in its own lawsuit against Nevada. The CFTC argues states cannot re-characterize swaps trading on regulated markets as illegal gambling.
Selig stated event contracts are commodity derivatives within the CFTC’s regulatory remit. The agency will defend its exclusive jurisdiction over such derivatives.
This legal push occurs amid broader interest in prediction markets from major platforms. Donald Trump Jr. has served as an advisor to Kalshi since January 2025 and is also an advisor to rival Polymarket.
