Kalshi has ceased the offering of sports and election contracts in Nevada, becoming the first state to compel the platform to restrict its primary services.
The decision comes after a state court issued a temporary restraining order (TRO) against Kalshi, preventing it from providing contracts for sports, entertainment, and election events within the state.
The Nevada Gaming Control Board (NGCB) announced on March 20 that the court granted its request for a TRO, stating that Kalshi has been operating without a proper gaming license, violating several statutes. According to the Board, the contracts offered by Kalshi are classified as wagering under Nevada law.
Chairman Mike Dreitzer criticized Kalshi’s assertion that its operations are legal across all 50 states, emphasizing that prediction markets that enable unlicensed gambling are illegal in Nevada. He reiterated the Board's responsibility to ensure public safety, advocating for regulated betting practices.
In response to the court's order, Kalshi has limited access to the affected markets for users in Nevada. The company communicated via email that while users can manage existing positions, they are unable to initiate new ones in the restricted categories. However, markets related to crypto, weather, and world news remain accessible.
Kalshi described the situation as unprecedented, noting that Nevada is the only state currently facing such restrictions due to a court ruling. The company expressed its disagreement with the restrictions but affirmed its commitment to comply with the law while maintaining confidence in its legal standing.
Furthermore, Kalshi encouraged Nevada users to engage politically, urging them to contact their representatives to advocate for open access to regulated prediction markets.