A federal district court in Nevada has issued a preliminary injunction in favor of Kalshi, placing a temporary hold on the state’s attempts to prevent the crypto-based prediction market from operating.
This ruling permits Kalshi to keep offering contracts for sports events in Nevada while it contests the state’s actions in court.
Judge Andrew P. Gordon made the ruling on Tuesday, partially supporting Kalshi in its challenge against the cease-and-desist order issued by Nevada, as reported by industry sources.
The Nevada Gaming Commission’s request for an immediate restraining order to close Kalshi’s sports markets was rejected.
A more comprehensive written judgment is anticipated soon.
Kalshi, which functions as an exchange regulated by the Commodity Futures Trading Commission (CFTC), recently emerged victorious in a legal dispute with the CFTC concerning its ability to list political event contracts. The company has since broadened its offerings to include sports prediction markets, partnering with Robinhood for events like the Super Bowl and March Madness.
Currently, Kalshi is confronting legal challenges from various states asserting that it, along with its partners such as Robinhood and Crypto.com, is offering unlicensed gambling products. In reaction, Kalshi has initiated lawsuits in federal courts against Nevada and New Jersey.
“Today, the Federal Court in Nevada granted Kalshi’s preliminary injunction and blocked the State from trying to prevent Kalshi from offering prediction markets,” the company announced in a statement.
Co-founder Tarek Mansour expressed his gratitude to the court via social media, highlighting Kalshi’s regulatory position.