Kalshi dealt a setback in Nevada with a 14-day sports suspension

• NGCB wins in court against Kalshi in Nevada, but the court case is ongoing
• A 14-day temporary restraining order will be in place until April 3
• Prediction markets have faced intensified scrutiny

Kalshi suffered a setback in Nevada on Friday, March 20, when a federal judge granted the Nevada Gaming Control Board (NGCB) a temporary restraining order.

The Nevada First Judicial District Court sided with the regulator, arguing that Kalshi must stop offering sports, entertainment, and election event contracts.

The order will be in effect through April 3, 1:30 pm local time, and marks a major success for a gaming regulator.

Kalshi and state gambling regulators have played a tug-of-war for a while now, with local authorities insisting that the prediction market platform should not be allowed to run its products locally.

Kalshi has rebuffed these claims, pointing out that it is a federally-regulated entity and thus should not answer to local gaming laws. The platform has also insisted that its product does not fit the legal definition of betting.

To the majority of Americans, however, prediction markets are gambling, and this is the stance maintained by regulators as well. Kalshi also stated in the wake of the temporary restraining order, saying:

"We disagree with those restrictions, but as a law-abiding company, we’re following them. We’re confident in our legal position, and we’ll continue to fight for your right to trade the same products that are available in 49 other states."

The NGCB has stated its own, celebrating what it saw as a victory:

"The Board considers the offering of sports event contracts, along with certain other event contracts, to constitute wagering activity under NRS 463.0193 and 463.01962."

The regulator, through Chairman Mike Dreitzer has dismissed the company’s justification and the argument that it runs across 50 states.

"Kalshi has repeatedly stated that its operations are legal in 50 states, which is clearly not true. Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public. We want people in the state to wager safely at a licensed book."

Predictionmarkets are facing intensified scrutiny with multiple regulatory and legislative moves directed at the sector over the past weeks andm months. Democratic Presidential hopeful, Emanuel Rham, has also pitched a policy idea to have federal workers, and their families, prohibited form placing trades on prediction markets.

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