Judge Jason Woodbury of Nevada’s First Judicial District Court ruled on Friday to extend a temporary injunction preventing the prediction market platform Kalshi from offering sports-related contracts in the state.
During a hearing at the Carson City courthouse, Judge Woodbury granted the Nevada Gaming Control Board’s (NGCB) request for a preliminary injunction. The order blocks Kalshi from continuing to offer certain prediction market services in the state until the legal challenge brought by state gaming regulators is fully resolved. The judge extended a temporary restraining order, originally issued on March 20, by two weeks to allow both parties to finalize the specific terms of the injunction.
Judge: Predictions are “Indistinguishable” from Gambling
According to Reuters, Judge Woodbury stated clearly in court that Kalshi’s prediction contracts on sporting events, such as baseball, are “indistinguishable” from wagers placed on state-licensed sportsbooks.
“Based on the arguments presented, I find that this constitutes gambling, and unlicensed entities may not engage in such business,” Woodbury noted during the hearing.
Kalshi has consistently argued that, as a federally regulated Designated Contract Market (DCM), its products fall under the category of derivatives trading and should therefore be exempt from state-level gaming oversight. However, NGCB Chairman Mike Dreitzer welcomed the ruling. In a statement, he emphasized that Nevada law is designed to protect the public interest and the integrity of the gaming industry, adding that the commission will continue to enforce regulations strictly to ensure compliance within the state.
In a press release, the commission further explained that sports-related contracts are classified as “wagering” under Nevada law and require appropriate gaming licensure to operate. Regulators in several U.S. states have recently taken action to restrict such prediction platforms, arguing that their sports-based products are essentially gambling and should be subject to state-level regulation.
While Kalshi CEO Tarek Mansour has not yet publicly responded to the ruling, the tug-of-war between the industry and state regulators continues. The U.S. Commodity Futures Trading Commission (CFTC) has previously supported such companies, filing amicus briefs arguing that these services should fall under a federal regulatory framework. As the case moves forward, the outcome could serve as a landmark precedent for the legality of prediction markets across the United States.
