Nevada gaming regulators are asking a state court to enforce an order against Kalshi, increasing pressure on the prediction market platform. The Nevada Gaming Control Board wants Kalshi held in contempt for allegedly failing to fully block users in the state from trading certain event contracts.
The request was filed in Nevada’s First Judicial District Court. It follows an April preliminary injunction that barred Kalshi from offering sports, entertainment and election contracts in Nevada without a state gaming licence.
Nevada questions Kalshi controls
Nevada argues that Kalshi has not complied with the court order because it relies mainly on IP address checks to identify users in the state. That approach is not enough to block Nevada residents from accessing restricted contracts.
The state is seeking penalties of at least $120,000 for each day of alleged non-compliance. It also wants stronger enforcement of the order while the wider dispute over prediction markets continues. Kalshi has said it complied with the Nevada order. The company argues that it is federally regulated by the Commodity Futures Trading Commission and that its event contracts fall under federal commodities law.
Nevada order remains important
Nevada is one of the most important states in the dispute because of its casino and sports betting industry. The state has long treated gambling regulation as a core part of its economy and public policy. A Nevada judge previously extended the order blocking Kalshi’s relevant contracts in the state. Sports event contracts on Kalshi were treated as similar to sports bets that would normally require a Nevada gaming licence.
That ruling made Nevada an important state in the legal fight. The dispute is about whether sports prediction markets are federally regulated derivatives or state-regulated gambling products.
California increases legal role
California has also increased its role in the prediction market fight. Attorney General Rob Bonta’s office joined a coalition of 37 attorneys general supporting Ohio in a case involving Kalshi. The Ohio case is before the US Court of Appeals for the Sixth Circuit. California has also joined similar multistate briefs in other prediction market disputes.
California has not filed its own direct case against Kalshi. However, three California gaming tribes have sued the company, arguing that its sports event contracts violate tribal gaming rights and federal Indian gaming law.
Tribal groups sue Kalshi
The California tribal lawsuit adds another legal issue for Kalshi. Tribal gaming groups argue that sports event contracts can affect rights protected under compacts and federal gaming law.
That issue is separate from state licensing fights, but it raises similar questions about market access. If prediction platforms can reach customers through federal commodities rules, tribes argue that regulated gaming agreements could be reduced.
