Nevada Court Extends Ban on Kalshi's Sports Prediction Markets

On April 4, 2026, a Nevada judge, Jason Woodbury, extended a ban on the prediction market operator Kalshi, prohibiting it from offering event-based contracts related to sports, elections, and entertainment in the state. This ruling follows a request from the Nevada Gaming Control Board, which argued that Kalshi's offerings constitute illegal gambling under state law. The judge's decision builds upon a temporary restraining order initially issued on March 20, 2026, and will remain in effect until a broader court case is resolved.

Nevada Judge Extends Ban on Kalshi Sports Prediction MarketsUsNews and World ReportBenzingaJudge Bans Kalshi Sports Outcome Contracts in NevadaNevada Judge Bans Kalshi Sports Outcome Contracts

Kalshi, based in New York, has been embroiled in a legal battle with Nevada regulators for over a year. The company contends that its contracts, which allow users to bet on outcomes of various events, are financial instruments regulated by the U.S. Commodity Futures Trading Commission (CFTC). However, Judge Woodbury dismissed this argument, asserting that the nature of Kalshi's contracts is "indistinguishable" from traditional sports betting, which requires a state gaming license.

BenzingaUsNews and World ReportNevada Judge Bans Kalshi Sports Outcome ContractsNevada Judge Extends Ban on Kalshi Sports Prediction MarketsJudge Bans Kalshi Sports Outcome Contracts in Nevada

This ruling places Nevada as the only state to have secured a court-enforced ban against Kalshi, highlighting the ongoing conflict between state and federal regulatory frameworks regarding prediction markets. The CFTC has recently challenged several states, including Arizona, which has pursued criminal charges against Kalshi for operating an illegal gambling business. The outcome of this legal battle could set significant precedents for the regulation of emerging financial technologies that overlap with traditional gambling laws.

BenzingaNevada Judge Bans Kalshi Sports Outcome ContractsNevada Judge Extends Ban on Kalshi Sports Prediction MarketsUsNews and World ReportJudge Bans Kalshi Sports Outcome Contracts in Nevada

In response to the ruling, Tarek Mansour, CEO of Kalshi, expressed disappointment but emphasized the company's commitment to working with regulators to find a viable path forward. Nevada Governor Steve Sisolak supported the ruling, stating, "Prediction markets like Kalshi's cannot be allowed to circumvent Nevada's strict gambling laws. This ruling upholds our state's commitment to responsible gaming regulations."

Nevada Judge Bans Kalshi Sports Outcome Contracts

Critics of the ruling argue that it stifles innovation in the financial technology sector. They contend that Kalshi's products could provide a regulated alternative to traditional gambling, potentially benefiting consumers and the broader market. The ongoing legal disputes raise questions about the future of prediction markets and their classification under existing laws.

Benzinga

Kalshi plans to appeal the judge's decision, indicating a protracted legal battle ahead. The company aims to engage further with Nevada gaming regulators to explore options that would allow it to operate within the state's legal framework while continuing to expand its offerings.

Judge Bans Kalshi Sports Outcome Contracts in Nevada

• “No matter how you slice it, that conduct is indistinguishable,” — Judge Jason Woodbury, First Judicial District Court

UsNews and World Report

• “We are disappointed in the court's decision, but we will continue to work with regulators to find a path forward that serves the interests of consumers and the broader prediction market industry.” — Tarek Mansour, CEO, Kalshi

Judge Bans Kalshi Sports Outcome Contracts in Nevada

• “What they’re saying “Prediction markets like Kalshi's cannot be allowed to circumvent Nevada's strict gambling laws.” — Steve Sisolak, Nevada Governor

Nevada Judge Bans Kalshi Sports Outcome Contracts