Published on: March 20, 2026, 01:39h.
Updated on: March 20, 2026, 01:39h.
- Nevada court issues a temporary restraining order against Kalshi for 14 days
- The ruling prohibits Kalshi from offering contracts related to entertainment, politics, and sports events in the state
- This marks the first instance where a state has mandated a prediction market to cease operations
The First Judicial District Court of Nevada has enacted a 14-day restraining order against Kalshi, preventing the prediction market operator from providing entertainment, political, and event-related contracts within the state.
This ruling is a significant development in the series of legal challenges the company and its competitors have faced, as it represents the first time a state has compelled Kalshi to temporarily suspend its operations. The temporary restraining order comes shortly after the Nevada Gaming Control Board (NGCB) initiated civil enforcement actions to remove the company from the state.
The court granted the plaintiff’s request for a temporary restraining order, which prohibits Kalshi from offering a derivatives exchange and prediction market for event-based contracts related to sports, elections, and entertainment,” as per the court’s decision.
According to Nevada law, temporary restraining orders cannot be contested, effectively putting Kalshi’s operations on hold in the state for at least 14 days.
The Developments in the Kalshi/Nevada Case
Recently, the Ninth Circuit Appeals Court dismissed Kalshi’s request to pause a lower court’s decision. This ruling sent the matter back to a lower federal court, allowing Nevada regulators to proceed against the prediction market operator.
In a previous ruling last month, the appeals court also backed the NGCB, enabling the regulator to advance its civil enforcement action against Kalshi. This occurred after U.S. District Judge Andrew Gordon lifted a prior injunction that had permitted Kalshi to conduct business in Nevada.
Nevada has consistently maintained a stringent stance against the operation of prediction markets within its borders. The state argues that Kalshi is effectively engaging in sports betting without the proper licensing, which could endanger Nevada consumers and the numerous regulated gaming entities present in the state.
The NGCB has also criticized Kalshi for broadening its sports offerings even as Nevada and other jurisdictions pursue legal action. Notably, the First Judicial District Court’s ruling came just days after Arizona issued a 20-count criminal complaint against Kalshi, marking the first time a prediction market company has faced criminal charges.
Court Finds NGCB Likely to Prevail
The First Judicial District Court of Nevada indicated that the NGCB “is reasonably likely to succeed on the merits.” In simpler terms, this suggests that if the case were to go to trial, the regulator would likely succeed in demonstrating that Kalshi is operating in violation of Nevada law.
The court highlighted that the state’s case against Kalshi demonstrates the expansive and stringent regulations governing gaming in Nevada. Moreover, it stated that such strict regulations serve the public interest and that gaming operations must only occur through entities that possess the necessary licenses from Nevada regulators.
The court emphasized that sports event contracts, like those offered by Kalshi, qualify as operating a “sports pool” under Nevada law. Furthermore, since Kalshi takes a commission on the trading of these contracts, it is effectively operating a “percentage game” as defined by Nevada regulations.