Last Friday, the First Judicial District Court of Nevada approved the Gaming Control Board's request to issue a temporary restraining order for 14 days against the prediction market platform Kalshi, forcing it to suspend offering contracts on sports, entertainment, and election events within the state. This marks the first time Kalshi has conceded in a state-level enforcement action and represents a minor victory for Nevada since issuing the nation's first cease-and-desist letter in March last year. In plain terms, Nevada has temporarily kicked Kalshi off its turf.
Temporary ban effective: 14-day grace period, Kalshi reluctantly "plays by the rules"
The temporary restraining order is effective until April 3rd, when the next hearing will take place. Following the enforcement of the ban, Nevada users attempting to purchase related contracts will receive an error message: "We disagree with these restrictions, but as a law-abiding company, we are complying." Kalshi emphasizes its "strong belief in its legal position" and will continue to fight for the rights to trade contracts in the other 49 states. Currently, Nevada has successfully restricted all known unlicensed prediction markets operating within the state, including Polymarket, Robinhood, Coinbase, and Crypto.com.
Technical response: Using registration data to "precisely block" Nevada users
Facing the previously staunchly opposed restrictions in court, Kalshi quickly implemented a block using user registration information. Nevada users are prohibited from trading the affected contracts, but visitors from other states can still trade normally. Interestingly, some contracts related to politics and entertainment are still tradable, while themes such as sports, movies, and television releases are banned, indicating that there are still blurred lines in categorization. The NGCB chairman emphasized that if prediction markets contribute to unlicensed gambling in Nevada, it is illegal, and the state government has a statutory duty to protect the public and guide people to bet safely through licensed channels.
Legislative gambling escalates: Bipartisan lawmakers join forces to push the "Prediction Markets as Gambling" bill
As Kalshi faces a heavy enforcement blow, bipartisan lawmakers proposed the "Prediction Markets as Gambling Act" on Monday, aiming to amend the Commodity Exchange Act to prohibit event contracts involving sports and casino-type games. The proponents vow to "eliminate this loophole that bypasses state consumer protection, infringes on tribal sovereignty, and does not contribute to public revenue." Kalshi's CEO countered that the gambling lobbying groups are pushing for the ban, but regulating prediction markets is a "better product," and the ban would only push it towards unregulated offshore markets. This bill, along with several other legislative efforts such as the "Prohibition of Sensitive Operations and Federal Function Event Trading Act," is attempting to reshape the legal boundaries of prediction markets. Interested in the latest developments in prediction market regulation? Follow the official PASA website.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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