Nevada sues Kalshi after court denies enforcement halt

A federal court denied Kalshi's request to halt Nevada's enforcement, letting the state sue over unlicensed wagering. Nevada claims Kalshi's contracts are illegal gambling; Kalshi cites federal oversight.

A federal appeals court has rejected Kalshi's emergency request to pause Nevada's enforcement actions, allowing the state to proceed with a civil lawsuit against the prediction market operator. Nevada regulators claim Kalshi's event contracts, particularly those tied to sports outcomes, amount to unlicensed wagering and violate state gambling laws. Following the court's decision, the Nevada Gaming Control Board swiftly filed a civil enforcement action to prevent Kalshi from operating without a state gaming license. Kalshi argues its contracts are federally regulated financial derivatives under the Commodity Futures Trading Commission (CFTC) and not subject to state gambling laws, but Nevada maintains it has jurisdiction. This legal battle highlights the ongoing conflict between federal oversight of derivatives and strict state gambling regulations. Nevada aims to protect its regulated betting market from external platforms. Kalshi is now seeking to move the case to federal court but faces limited options after the appeals court's ruling.