The Nevada Attorney General’s Office has issued a letter to the Ninth Circuit Court of Appeals stating its intention to file a civil enforcement action against Kalshi on February 17, following the operator’s filing of a stay motion in December 2025.
“Since filing its stay motion, Kalshi has continued to dramatically expand its business, rather than attempting to maintain any kind of status quo. Kalshi has massively increased its trading volumes, and has aggressively, and wrongly, marketed its sports bets as ‘100% legal’ in ‘all 50 States,’” the letter said.
“As the district court found, every day that Kalshi operates in violation of Nevada law causes ‘substantial irreparable harms to State Defendants, the State of Nevada, the gaming industry in this state and the public interest.’ Kalshi’s continued operation harms the public because Kalshi offers sports betting but does not comply with ‘the same rigorous regulations and oversight as the licensed entities in this state.’”
The letter acknowledged Kalshi is the “only prediction market currently operating in Nevada” and “poses an existential threat to the state’s gaming industry.”
When Nevada’s District Court originally denied preliminary injunction relief to Kalshi, Robinhood and Crypto.com in late 2025, Robinhood and Crypto.com “voluntarily agreed” to suspend operations in the state while its appeals are still pending.
The Nevada Gaming Control Board (NGCB) and Attorney General’s Office had previously filed civil enforcement actions against both Polymarket and Coinbase, resulting in 14-day temporary restraining orders for both operators.
Under state guidelines such as NRS 463.0193 and 463.01962, the NGCB considers the offering of sporting event contracts, or certain other contracts, to constitute wagering activity.
Despite agreeing to temporarily forego civil enforcement action against Kalshi while its stay motion was still pending, the Attorney General’s Office believes the operator’s “own actions now compel state defendants to take action to stop Kalshi’s unlawful behavior.”
With Super Bowl LX having concluded on February 8, prediction markets operator Kalshi reported its Super Bowl-related markets processed over $865.2m in trading volume by game’s end
