Nevada's Legal Showdown with Kalshi: The Future of Sports Betting on Prediction Markets

Nevada's gaming regulators have initiated a legal battle against prediction market operator Kalshi by filing a lawsuit aimed at stopping the company from offering sports betting contracts.

The legal action highlights the ongoing jurisdictional dispute between state regulators and the Commodity Futures Trading Commission, which argues it has exclusive oversight over prediction markets like Kalshi. As the case unfolds, its outcome could significantly influence the regulation of similar companies nationwide.

Nevada contends that Kalshi's offerings constitute wagering activities under state law, asserting the need for a license. The state has previously secured restraining orders against operators like Coinbase and Polymarket, and hopes to achieve the same with Kalshi through the courts.