On April 4th, a judge in Nevada, USA, ruled that the sports prediction market products offered by the Kalshi platform are "indistinguishable from gambling activities" and decided to extend the previously issued temporary restraining order, while also approving the preliminary injunction proposed by the state gaming regulatory agency. This means that Kalshi is prohibited from providing any related contract services in Nevada until further proceedings in the case. The court pointed out that purchasing sports event contracts on the platform is essentially the same as placing bets on a licensed gambling platform, constituting unlicensed gambling activities. Frankly speaking, Kalshi has always tried to package itself as a "prediction tool" rather than a "casino", but the Nevada judge has directly pierced through this facade.
Key Points of the Ruling: Contracts and Bets "Indistinguishable"
Nevada, as the core hub of the gambling industry in the United States, has always had a tough stance on any form of "gambling-like" products. The court emphasized in its ruling that Kalshi's sports prediction contracts are highly similar to traditional sports betting in both structure and consumer experience—users bet money, profit or lose based on the results of the event, and the platform takes a cut. This logic directly undermines Kalshi's legal defense of "derivatives trading". The approval of this preliminary injunction means that Kalshi will be completely blocked from Nevada until the lawsuit concludes.
Regulatory Trends: Multiple States Tighten Restrictions on Prediction Markets
Kalshi is not the only prediction market platform facing regulatory pressures. Previously, the CFTC has sued the states of Arizona, Connecticut, and Illinois over federal jurisdiction of prediction markets, while Nevada, New Jersey, and other states are also advancing their restrictive measures. As more states categorize sports prediction contracts as "gambling", the compliance space for such platforms is rapidly narrowing. For Kalshi, the ruling in Nevada is undoubtedly a heavy blow. For more updates on US gambling and prediction market regulations, continue to follow the PASA official website.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
