Kalshi Case Partially Paused in Nevada as Discovery Moves Forward

The legal fight involving Kalshi and state regulators in Nevada is slowing down, but it’s far from stopping.

On January 14, Chief U.S. District Judge Andrew P. Gordon partially paused the prediction market platform’s case against the Nevada Gaming Control Board (NGCB). The decision allows the Ninth Circuit Court of Appeals time to review Kalshi’s appeal of a November ruling that dissolved a preliminary injunction which had previously blocked state enforcement.

Discovery Continues Despite Partial Pause In Kalshi Case

However, the pause only goes so far. Judge Gordon refused to halt discovery, meaning both Kalshi and Nevada regulators must continue exchanging documents, producing evidence, and conducting depositions while the appeal plays out. Deadlines for dispositive motions and a proposed joint pretrial order have been temporarily suspended, but will be reinstated once the appellate process reaches a conclusion.

In his order, Gordon noted that the Ninth Circuit’s ruling is likely to provide legal guidance on the core dispute, whether Kalshi’s event contracts fall under federal derivatives regulation or state gambling laws, but may not resolve the case outright. By keeping discovery active, the court signaled that the matter is likely to return to district court regardless of how the appeal is decided.

The Nevada dispute dates back to March 2025, when the NGCB ordered Kalshi to cease operations in the state, arguing its products resembled unlicensed sports betting. Kalshi responded by filing a federal lawsuit, asserting that it operates under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and is therefore permitted to offer markets nationwide. While Kalshi initially secured a preliminary injunction in April, Judge Gordon reversed course in November, ruling that the platform is subject to Nevada’s gaming laws.

Kalshi’s Regulatory Battle Spreads Beyond Nevada

Nevada is just one front in a growing regulatory battle. Kalshi is now facing pushback in multiple states, most recently in Tennessee, where the Sports Wagering Council issued cease-and-desist letters earlier this month. Kalshi quickly filed suit, and a federal judge granted temporary emergency relief, with a hearing scheduled later this month.

All of this is unfolding as prediction markets continue to expand rapidly. Traditional sportsbooks, crypto exchanges, and brokerage platforms are entering the space, while regulators struggle to fit these products into existing frameworks. With discovery moving forward in Nevada and injunction fights playing out elsewhere, Kalshi’s legal status remains unsettled, and the outcome could help define how prediction markets operate across the U.S. in 2026 and beyond.

Alex Warren

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