Kalshi Scores Partial Win in Nevada Court Battle
A federal court in Nevada handed Kalshi a partial victory in its showdown with the state’s gaming regulator. U.S. District Judge Andrew P. Gordon issued a preliminary ruling, siding partly with Kalshi’s push for a temporary restraining order and preliminary injunction.
A Federal Judge Steps In
The decision blocks Nevada’s attempt to shut down Kalshi’s sports event contracts, letting the company keep operating while the case plays out. It’s a big moment for Kalshi, but the fight’s far from over.
Gordon greenlit Kalshi’s request to pause Nevada’s cease-and-desist order, issued by the Nevada Gaming Commission (NGC) after the firm rolled out prediction markets tied to sports. He also shot down the NGC’s counter-move for an immediate ban on those offerings.
For now, Kalshi’s contracts stay live in Nevada. Full details from Gordon’s pen are still pending, he’ll drop a written breakdown later.
The Core Clash
This mess started when Kalshi, backed by the Commodity Futures Trading Commission (CFTC), launched sports-related contracts Nevada calls illegal betting. The NGC says these markets break state gambling laws since Kalshi lacks a Nevada license.
Kalshi fires back, leaning on its CFTC approval and the Constitution’s Supremacy Clause, arguing federal rules trump state ones. It’s not alone. Nevada’s one of six states, alongside New Jersey, Illinois, Maryland, Ohio, and Montana, hitting Kalshi, Robinhood, and Crypto.com with similar shutdown notices.
Kalshi’s got a track record of scrapping with regulators and winning. Last year, it beat the CFTC in court to offer political event bets, setting the stage for this Nevada tussle.
The NGC’s not budging, though, its cease-and-desist aimed to choke Kalshi’s sports offerings fast. Gordon’s call keeps that chokehold off, letting Kalshi breathe while the legal gears grind. Both sides are dug in, and this partial nod doesn’t settle the score.
What It Means for Kalshi
For now, Kalshi can keep its sports contracts rolling in Nevada, a state where $8.2 billion was wagered last year alone.
Gordon’s full ruling could shift the tide, and Nevada’s not the only state swinging. Six cease-and-desist orders mean Kalshi’s juggling fights nationwide, with Nevada just the loudest right now.
The decision’s a lifeline, not a lock. Kalshi’s betting on federal clout to outmuscle state rules, a play that worked against the CFTC before. If Gordon’s final take backs that up, it could ripple and New Jersey or Illinois could rethink their stances.
But if Nevada flips it, Kalshi’s sports markets might stall, forcing a pivot or a licensing scramble. Either way, the company’s holding ground for now.
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