Nevada Takes Legal Action to Stop Kalshi’s Sports Betting Platform

Nevada gaming officials have filed a lawsuit to prevent Kalshi, an online prediction market, from offering contracts that let residents bet on sports like football and basketball. The case is part of a larger fight over whether state regulators can oversee companies that allow financial bets through digital markets. The Commodity Futures Trading Commission, in a related filing, backed Kalshi by saying it has sole jurisdiction over such markets. Kalshi had tried to stop Nevada from suing, but a federal appeals court denied the request to pause an earlier judge’s order that lifted an injunction blocking enforcement. If Nevada wins, it will be the second state to block Kalshi from providing sports contracts after Massachusetts did so earlier this month.Nevada argues that these contracts amount to wagering under state law, meaning Kalshi must hold a gambling license. The state points out that Kalshi has not followed rules that forbid people under 21 from betting and that require safeguards against insider bets or match‑fixing. Other prediction market firms, Coinbase and Polymarket, have also been barred from offering contracts by Nevada courts. Kalshi has asked to move the case to federal court, claiming that the matter concerns whether it falls under the CFTC’s exclusive jurisdiction. The company says its contracts are swaps, a type of derivative that the federal regulator controls. The outcome will shape how states can regulate online betting platforms and whether federal agencies have the final say.