Prediction market operator Kalshi has been ordered to stop offering sports event contracts in Nevada after a federal judge ruled in favour of state gaming regulators.
The decision reverses an earlier injunction that had permitted the platform to continue operating while it contested a cease-and-desist order issued in March by the Nevada Gaming Control Board.
In a 29-page ruling, US District Judge Andrew Gordon rejected Kalshi's argument that its products fall solely under the jurisdiction of the Commodity Futures Trading Commission.
US District Judge Andrew Gordon said: "That interpretation upsets decades of federalism regarding gaming regulation, is contrary to Congress' intent ... and cannot be sustained."
The case centres on whether Kalshi's "yes" and "no" contracts tied to sporting outcomes should be treated as swaps under federal commodities law or as sports wagers subject to state gambling regulation.
In April 2025, Judge Gordon granted a preliminary injunction in Kalshi's favour. In October, however, he denied a similar request from Crypto.com in a separate Nevada dispute involving sports-related event contracts.
Following Monday's ruling, the Control Board said Kalshi must cease offering sports contracts in Nevada.
Nevada Gaming Control Board Chairman, Mike Dreitzer, said: "The Board will vigorously oppose that motion and will continue to expeditiously pursue a path through the courts to stop Kalshi's unlawful conduct."
Kalshi Head of Corporate Development, Sara Slane, said: "Kalshi is a regulated, nationwide exchange for real-world events, and it is subject to exclusive federal jurisdiction."
The ruling also affects a related case involving Robinhood. Judge Gordon denied the stock trading platform's request for an injunction that would have allowed its users to access Kalshi's sports contracts.
According to the Control Board, Robinhood agreed to halt new sports event contracts in Nevada while proceedings continue.
Earlier this month, Kalshi released polling data suggesting strong voter support for access to prediction markets under federal rather than state regulation, and the sector has gained additional visibility through data integrations with Google Finance and partnerships with major sports leagues such as the NHL.
Sports betting is currently legal and regulated in 39 US states and Washington, DC, alongside separate tribal gaming regimes that set their own rules for wagering products and operators
