Nevada Shuts Down Kalshi for 14 Days as Temporary Ban Signals Bigger Fight Ahead
A judge granted a temporary restraining order (TRO) application from the Nevada Gaming Control Board (NGCB) on Friday, banning Kalshi from the state for 14 days.
This means that Kalshi cannot offer or facilitate any event contracts in Nevada related to sports, elections, and entertainment. It also can’t accept wagers from people under 21. A preliminary injunction hearing is scheduled for April 3 in Carson City.
The 9th Circuit denied Kalshi’s emergency motion on March 19 for a stay pending appeal of the Nevada federal district court’s remand order from March 2. This opened the door for a state court-issued TRO against Kalshi.
In a press statement on March 20, the NGCB said that Friday’s ruling followed “decisive action in recent months to halt the operations of other prediction markets in the state.” Nevada law does not allow appeals for a TRO.
Kalshi Exits the Market Temporarily
A pop-up now appears for Nevada’s Kalshi accountholders saying that they can’t open positions in sports, elections, and entertainment for the moment. It prompted users to contact their local Nevada representative and “support free access to regulated prediction markets in Nevada.”
Kalshi also emailed Nevada users about the matter, saying that customers could still sell their positions or wait for them to resolve. But, they can’t buy new contracts for now. It noted that people could still actively trade other markets, like crypto, weather, and world news. The company said that it disagrees with the restriction, but “as a law-abiding company,” it’s following them.
Kalshi is confident in its legal position and will keep fighting. In a dig at Nevada’s licensed gaming industry, Kalshi said that people in the state “should not be forced into a business model designed to penalize winners and maximize user losses.”
Court Ruling and Legal Arguments
The NGCB initially filed its TRO application in the 1st Judicial District Court in Nevada on March 12. It sought a permanent injunction and declaratory relief against Kalshi. It alleged that the platform was offering gambling without a gaming license.
Allowing it to continue operating would undermine regulatory integrity, enable underage gambling (Kalshi accepts customers who are at least 18 years old), and the “irreparable harm couldn’t be remedied by damages.” The NGCB claimed that every day an unlicensed operator continues operating will lead to increased harm to consumers and the regulatory framework.
Judge Jason D. Woodbury found that Kalshi’s event-based contracts constitute a “sports pool” and a “percentage game” under Nevada statutes, as they involve acceptance of bets on uncertain sporting and other events, with Kalshi taking a commission on each contract.
The court also rejected Kalshi’s argument that federal law grants the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction and preempts state regulation. Judge Woodbury found that the Nevada federal district court’s reasoning in a case involving Kalshi and Hendrick was more persuasive and concluded that Nevada law isn’t preempted.
Wider Regulatory Pressure Builds
Friday’s decision makes Nevada the first U.S. state to successfully obtain and enforce injunctive relief against Kalshi. Action against the prediction markets operator is heating up. On March 17, Arizona became the first state to file criminal charges against Kalshi over what the state calls unlicensed sports betting.
The NGCB has been battling against Kalshi for more than a year now. It first sent a cease-and-desist notice on March 14, 2025. Polymarket was also hit with a TRO in Nevada by the same judge presiding over the Kalshi case. It paused its contracts in the state in late January, with the Super Bowl included during the banned period.
Nevada’s move could set the tone for how other states approach prediction markets in the months ahead. The April 3 hearing outcome may determine whether platforms like Kalshi can continue operating under existing frameworks or face broader restrictions across the U.S.
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