A Nevada state judge has issued a temporary restraining order, blocking prediction market platform Kalshi from operating in the state for 14 days. The order, granted by Carson City District Court Judge Jason Woodbury on Friday, March 22, 2026, sides with the Nevada Gaming Control Board's motion to halt the company's activities.
The core of the dispute centers on whether Kalshi's event contracts—which allow users to speculate on outcomes related to sports, elections, and entertainment—constitute illegal, unlicensed gambling under Nevada law. State regulators argued successfully that these contracts fit the definition of "sports pools" and thus require a state gaming license. Nevada Gaming Control Board Chair Mike Dreitzer emphasized the state's duty to protect the public, stating to Reuters that "Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada."
Kalshi had defended its operations by arguing they fall under federal jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gambling laws. However, Judge Woodbury rejected this defense for now, finding that current legal authority favors the state's position. This temporary ruling sets a precedent as the broader legal battle over the classification of prediction markets continues.
The Nevada case is part of a widening multi-state legal offensive against Kalshi. The company is simultaneously fighting an injunction in Massachusetts—though temporarily lifted on appeal—and facing 20 criminal charges in Arizona for allegedly running an illegal gambling operation. Kalshi CEO Tarek Mansour has called the Arizona charges a "total overstep."
The next key hearing in Nevada is scheduled for April 3, 2026, where the court will consider whether to impose a longer-term injunction. The outcome of these state-level battles could significantly shape the regulatory future of prediction markets in the United States, testing whether event contracts are treated as financial derivatives or gambling products.
