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Judge Rules Kalshi's Contracts Unlicensed Gambling, Enforces Cease-and-Desist

11/27/2025

Summary

Judge Rules Against Kalshi

Judge Andrew Gordon of the U.S. District Court for the District of Nevada ruled that Kalshi's sports event contracts are unlicensed gambling.
It enables state regulators to enforce cease-and-desist orders against Kalshi.
The decision overturns a prior injunction that had temporarily shielded Kalshi from state action.
Judge Gordon stated that Kalshi's claim of federal oversight exempting it from state gambling regulations was flawed.

Summary

Hornbuckle Supports Regulation

The Nevada Gaming Control Board warned casino operators to avoid sports-prediction market contracts or risk losing their licenses, following a federal court ruling that such contracts are wagers under Nevada gambling regulations.
MGM Resorts International Chief Executive Officer Bill Hornbuckle supported the Board, saying prediction markets should follow the same rules as sports betting and need regulatory clarity.
The ruling could affect Kalshi and Robinhood, which paused new contracts in Nevada.

History

Historical Context

The U.S. Supreme Court's 2018 ruling in Murphy v. National Collegiate Athletic Association declared the Professional and Amateur Sports Protection Act unconstitutional, empowering states to regulate sports betting. Following this decision, New Jersey legalized sports betting on June 14, 2018, leading to a rapid expansion of state-level gambling legislation across the country, with 38 states allowing some form of sports betting by 2023.

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Judge Rules Against Kalshi

Judge Andrew Gordon of the U.S. District Court for the District of Nevada ruled that Kalshi's sports event contracts are unlicensed gambling.
It enables state regulators to enforce cease-and-desist orders against Kalshi.
The decision overturns a prior injunction that had temporarily shielded Kalshi from state action.
Judge Gordon stated that Kalshi's claim of federal oversight exempting it from state gambling regulations was flawed.

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