Nevada Looks Set to Become First State to Block Kalshi as Judge Rules Against Platform

Nevada has already forced Polymarket and Crypto.com out of the state, and Kalshi looks set to join them as an outlawed prediction market. The court of appeals has denied Kalshi’s motion for an administrative stay, which would have allowed it to continue operations while its case against the Nevada Gaming Control Board (NGCB) is ongoing.

Following the denial of Kalshi’s motion, Nevada courts are expected to issue a temporary restraining order (TRO) against the company, as requested by the NGCB. This would effectively mean that the platform has to block users in Nevada from accessing its sports-related event contracts.

Gaming lawyer Daniel Wallach wrote on X, “If issued (possibly as soon as today or tomorrow), the TRO would last for 14 days until a preliminary injunction hearing is held. Since a TRO is not appealable under Nevada law, Kalshi would be required to exit the state in the interim (barring another Hail Mary).”

The Carson City District Court did not issue a TRO on Thursday. Judge Jason Woodbury, who is presiding over the case, previously granted the NGCB’s request and issued a TRO against Polymarket last month, leading the platform to block users in Nevada from its recently launched US platform.

The state has also taken legal action against Coinbase and Crypto.com over their sports markets, with the latter exiting the state last year. FanDuel and DraftKings also gave up potential sports betting licenses in Nevada due to the state’s opposition to the launch of their prediction market platforms.

Robinhood, which offers Kalshi’s markets through its app, also agreed to halt its sports markets in Nevada in November last year. Kalshi, however, has fought hard against state regulators and continues to insist that it is governed at the federal level.

Will Supreme Court Intervene?

A possible Hail Mary would be an emergency intervention from the Supreme Court (SCOTUS). Polymarket actually has a market on whether SCOTUS will accept a sports event contract case. Currently, it gives a 27% chance that a case will be heard before the end of July and a 64% chance by the end of the year.

Wallach said he does not expect a definitive ruling in SCOTUS before the first half of 2028, but said he expects “a spate of shadow docket emergency applications to SCOTUS for stay relief this year and next.” Nevada could be the first of these as Kalshi battles for survival in the state.

Legal Battles Ramping Up

The ruling in Nevada is likely to be used by other state regulators in their battles. Kalshi has suffered setbacks in other states, with judges in Ohio and Michigan refusing to grant injunctions against gambling regulators.

Arizona became the first state to file criminal charges against the company this week. If that is successful, then other states are likely to take similar action.

A Kalshi spokesperson told CasinoBeats, “These state-court charges are seriously flawed. It’s gamesmanship.

“Four days after Kalshi filed suit in federal court, these charges were filed to circumvent federal court and short-circuit the normal judicial process. They attempt to prevent federal courts from evaluating the case based on the merits – whether Kalshi is subject to exclusive federal jurisdiction.”

“These charges are meritless, and we look forward to fighting them in court.“

Despite the legal challenges, the company continues to grow at an exponential rate. A new round of financing values Kalshi at $22 billion.