A federal judge has sent Nevada’s civil enforcement case against Kalshi back to state court, putting the dispute back on the track Nevada wanted. The Nevada Gaming Control Board filed the case in Carson City District Court in mid-February, asking for an order that would stop Kalshi from offering sports-related event contracts to people in Nevada unless it is licensed under state gaming law.
Kalshi had moved the case into federal court almost immediately. Its core argument was that these contracts are federally regulated event contracts under the Commodity Exchange Act, and that state regulators cannot treat them as sports betting.
Remand shifts the fight from venue to a near-term injunction
The Nevada Gaming Board is not asking for a long policy debate first. It is asking the court to block activity now, then let the deeper legal arguments play out. In its complaint, Nevada says Kalshi’s sports contracts function as unlicensed sports wagering and should be subject to Nevada’s licensing rules, including the state’s 21 and over requirement.
While the case sat in federal court, it was reassigned under the District of Nevada’s related-case rules to U.S. District Judge Miranda M. Du. Court filings show the overlap was tied to similar removal and jurisdiction questions involving the Nevada Gaming Control Board and Kalshi.
The Nevada Gaming Board is arguing that each day the contracts remain available to the public creates ongoing harm to Nevada’s regulated market and makes later enforcement harder.
Nevada is using an enforcement playbook it has used before
If a product looks and works like sports betting for Nevada residents, the state says it must run through Nevada’s licensed system. This is not the first time the state has taken that approach against prediction market style offerings.
Nevada has previously moved to block other operators like Polymarket, from offering similar contracts in the state. All the while, Kalshi continues to reiterate its stance that contracts are regulated at the federal level and that states cannot reclassify them as gambling.
