Kalshi Court Cases: Agreement in Maryland as Nevada Calls for More Evidence

Kalshi has reached an agreement with Maryland’s gaming regulator to continue operations for the time being. At the same time, in its court case in Nevada, the state has requested a formal discovery process.

A Maryland judge declined to grant Kalshi a preliminary injunction earlier this month in its court battle with the state. Kalshi filed for a new injunction, which it has now withdrawn after receiving assurances it can continue operations in the state until an appeal is heard in the Fourth Circuit Court.

A verdict on the appeal against the decision not to grant an injunction is likely to be made in October at the earliest, giving Kalshi at least two more months to continue operating in Maryland.

Meanwhile, in Nevada, the state has requested a formal discovery process to provide more transparency on Kalshi’s operations and communications. A judge in Nevada previously granted Kalshi a preliminary injunction, as did a judge in New Jersey, meaning the platform can continue its operations in all states for now.

In addition to having active court cases in Maryland, Nevada, and New Jersey, Kalshi received cease-and-desist letters from four other states, and it is also facing a lawsuit in California, brought by tribal gaming groups.

Nevada Wants More Information on Kalshi

The request for a formal discovery process in Nevada calls for Kalshi to provide evidence of the event contracts it offers in the state to determine whether these comply with Nevada gaming laws.

Discovery is the civil litigation process where each side can demand information or evidence from the other before trial or summary judgment. Nevada’s filing says it needs discovery to test Kalshi’s factual assertions and to build its defenses, while Kalshi says the process would be costly and cumbersome.

Both sides laid out their positions in a document submitted to the court.

Communications Could Further Complicate Quintenz Appointment

Additionally, Nevada wants Kalshi to reveal its communications with the Commodity Futures Trading Commission (CFTC) to provide further evidence of whether the organization is effective at regulating the operator.

There have also been investigations into the communications between the CFTC and Brian Quintenz, who is a Kalshi board member and nominee to lead the organization.

Emails revealed that Quintenz is in frequent communication with the CFTC, which has led to further questioning of his appointment. Any additional revelations from communications between Kalshi and the CFTC would likely increase the growing opposition.

For now, Donald Trump and the White House have reiterated their support for Quintenz, but several delays, along with the Senate being in recess, have his appointment on hold.

A decision on whether to grant Nevada’s request for further discovery is scheduled for August 22. In Maryland, the opening brief is due to be submitted to the appeals court in September, with a response due in October.

In Kalshi’s court case in New Jersey, another hearing is scheduled for September 8. The lawsuit brought by tribes in California is set to get underway on October 14.

In the meantime, the platform anticipates significant trading activity on its NFL markets in the lead-up to the new football season.