On April 9, 2025, U.S. District Court Judge Anthony Gordon issued a ruling that granted Kalshi’s motion for a preliminary injunction, allowing the company to continue offering and trading sporting-event contracts in Nevada. The ruling comes after Kalshi had filed a legal challenge against the Nevada Gaming Control Board, which had sought to prevent the company from operating in the state.
Judge Gordon determined that Kalshi had shown a “likelihood of success on the merits,” meaning that the company’s federal regulatory status could override state-level requirements typically reserved for traditional sportsbooks.
Kalshi’s Ongoing Legal Challenges and Efforts to Secure Federal Regulatory Recognition
Kalshi’s legal battle has been ongoing and follows a significant victory the company achieved last October in the U.S. Court of Appeals, where it won the right to offer election-event contracts ahead of the 2024 U.S. presidential election.
However, the Commodity Futures Trading Commission (CFTC) has appealed that decision, and a verdict in the D.C. Circuit Court of Appeals could influence Kalshi’s sports betting case. Additionally, Kalshi has received cease-and-desist orders from several state gaming agencies, including Illinois, Maryland, Montana, and Ohio, although it has not yet pursued legal action in these states.
Kalshi Wins Injunction to Continue Trading Sports Contracts in Nevada Amid Broader Legal BattlesJudge Gordon’s ruling was a crucial step in Kalshi’s efforts to defend its operations against state-level regulatory efforts. With the injunction in place, Kalshi can continue offering sports-related event contracts in Nevada as the case proceeds.
The ruling represents a significant acknowledgment that Kalshi, which is federally regulated, may not need to adhere to state-level sportsbook licensing requirements. This decision marks a victory for the company in maintaining its business model while fighting for broader legal recognition of its operations in other states.
Potential Impact of Kalshi’s Legal Victory on Future Operations and Market Expansion
Despite this victory, Judge Gordon noted that Kalshi is proceeding “at its own risk,” especially concerning the future of its election-related contracts. The court recognized that the outcomes of appeals related to Kalshi’s election contracts and potential actions by the CFTC against its sports contracts could alter the situation.
Judge Gordon stressed that halting Kalshi’s operations entirely could lead to considerable reputational damage and financial losses, making the injunction crucial to maintaining the company’s current position until the legal challenges are fully resolved.
The ruling in Nevada could have far-reaching consequences for Kalshi, particularly as it looks to expand its influence in the sports betting market. The company’s contracts related to high-profile events like the NCAA Tournament and The Masters have seen substantial trading volumes, signaling growing interest in its offerings.
This ruling could strengthen Kalshi’s position in its ongoing legal battles, particularly in New Jersey and other states with similar regulatory challenges. The decision could also encourage further legal action by Kalshi in other jurisdictions, potentially setting a precedent for the regulation of prediction markets on a broader scale.