Kalshi injunction may be lifted
A federal judge says he is inclined to end the injunction blocking Kalshi from offering sports-related prediction contracts in Nevada, urging the company and state regulators to reach a compromise before he issues a ruling.
A bid by prediction market operator Kalshi to keep offering sports-outcome contracts in Nevada may face a setback after a federal judge indicated he is leaning toward dissolving a preliminary injunction against the state.
U.S. District Judge Andrew Gordon said he is considering granting the request from Nevada gaming regulators, which would prevent Kalshi from writing prediction contracts tied to sports outcomes until the company’s lawsuit is resolved. He encouraged Kalshi and the state to reach an agreement by 24 November before he issues a final decision.
Kalshi sued the Nevada Gaming Control Board, the Nevada Gaming Commission and individual commissioners in March after the Control Board issued a cease-and-desist order halting its sports-related prediction contracts. The company argues its yes-or-no propositions on sporting outcomes are not sports betting, despite marketing itself as operating in all 50 states.
Regulators — supported by the Nevada Resort Association — maintain that prediction market platforms such as Kalshi, Robinhood and Crypto.com are offering unlicensed sports wagering with fewer safeguards against underage or problem gambling, and outside Nevada’s tax framework.
Following a 2½-hour hearing, Gordon said he would not rush his decision but was leaning toward ending the injunction. If no compromise is reached, hearings are expected next month on whether prediction markets can offer such contracts in states that have not authorised sports betting.
