A Nevada state judge on Friday extended a temporary ban on sports-related contracts from prediction market provider Kalshi in the Silver State.
Judge Jason Woodbury in First Judicial District Court told attorneys at a Carson City court hearing that he would also grant the Nevada Gaming Control Board’s request to impose a preliminary injunction against Kalshi prohibiting him from offering some of his prediction markets until a broader court case by the state gaming regulator could be resolved. He extended by two weeks the temporary restraining order he first granted on March 20 to clarify the language of the court order, Reuters reported on Friday.
The judge’s original temporary restraining order prevented Kalshi from offering sports, entertainment and election-related betting.
The judge said purchasing a contract for a baseball game in Kalshi was “indistinguishable” from placing a bet on a state-run gaming platform, Reuters reported.
“So, based on the arguments that have been presented, I consider that this is a gambling activity that is prohibited to anyone who does not have a license,” he said.
Spokespeople for Kalshi and the Nevada Gaming Control Board did not respond to requests for comment.
State regulators have moved to block prediction market providers in much of the U.S., arguing that these companies’ sports-related products appear to be gambling products that should be regulated at the state level. Kalshi and other prediction market providers argue that they are federally regulated designated contract markets that offer swaps, a type of derivative product, and therefore are not subject to state regulators.
The Commodity Futures Trading Commission, led by Chairman Mike Selig, has taken a position in agreement with these companies. It filed an amicus brief in an appeals court case earlier this year and sued Arizona, Illinois and Connecticut on Thursday along with the Justice Department, arguing it is the proper regulator and alleging the states are violating its role.
The hearing took place on the same day as another hearing in federal court in Arizona. At that hearing, Kalshi had filed a request to block state regulators from filing requests to block the prediction market provider’s products in the state. Arizona Attorney General Kris Mayes had previously filed an information alleging criminal charges against Kalshi.
According to the court record, District Judge MIchael Liburdi heard arguments and is considering the motion.
