Nevada District Judge Jason Woodbury has expanded the preliminary injunction request he previously approved on April 6 to prohibit Kalshi from offering sports-, entertainment- and election-related event contracts to residents.
Woodbury described sports-related event contracts as those involving the “outcome of sporting events… any element of any sporting event or any combination of elements or outcomes of sporting events.”
As set in the ruling from April 6, Kalshi has until May 4 to implement geofencing or geolocation measures in Nevada to prevent residents from engaging in any activity or transaction which is currently illegal under state gaming laws.
Kalshi may request an extension to the May 4 deadline if geofencing measures are unable to be met, but would also be required to submit a full explanation to Woodbury as to why the extension is necessary.
The preliminary injunction request was submitted by the Nevada Gaming Control Board (NGCB), which seemingly looked to expand the restrictions placed upon Kalshi to include entertainment and political event contracts.
The clarification was required once discussions over whether Kalshi could offer trading on contracts not related to sports “got complicated” during the previous hearing.
Kalshi had argued that implementing geofencing or geolocation measures in Nevada would be “prohibitively expensive” for the operator, but it appears Judge Woodbury had no qualms about maintaining the May 4 deadline.
The operator is facing additional legal challenges in Massachusetts after the Public Health Advocacy Institute (PHAI) filed a lawsuit against Kalshi, Robinhood and Susquehanna International Group for violating state gambling laws and offering unlicensed sports wagering to residents.
PHAI alleges Kalshi, Robinhood and Susquehanna offer a “prediction market structure” which acts as a “pretext designed to disguise" unlicensed sports betting as federally regulated "financial trading."
The NBA advanced discussions with Kalshi and Polymarket on forming a new partnership with both operators on April 16, potentially joining MLB and NHL in collaborating with prediction market entities
