A Nevada court has prolonged restrictions on prediction market operator Kalshi, preventing the company from offering event-based contracts to residents without proper authorization under state gaming laws. The decision marks another step in a widening legal conflict between state regulators and companies that offer contracts tied to real-world outcomes.

Judge Jason Woodbury announced during a hearing in Carson City that he intends to grant a preliminary injunction requested by the Nevada Gaming Control Board. This move will continue to block Kalshi from operating in the state unless it obtains a gaming license. The ruling follows an earlier temporary restraining order issued on March 20, which had already halted access to contracts involving sports, elections, and entertainment.

Court Extends Restrictions While Preparing Injunction

The temporary order, initially set for 14 days, has now been extended through April 17 as the court finalizes the terms of a longer-lasting injunction. Woodbury indicated that Kalshi’s offerings closely resemble traditional sports betting, despite the company’s argument that its contracts fall under federal financial regulations.

During the hearing, Woodbury emphasized the similarity between Kalshi’s platform and licensed sportsbooks. “No matter how you slice it, that conduct is indistinguishable,” he said according to Reuters. “So I find based on the arguments that have been presented that it is a gaming activity that is prohibited for any non-licensee to engage in.”

The Nevada Gaming Control Board welcomed the decision. Chairman Mike Dreitzer said he was “pleased” with the outcome and reaffirmed the agency’s commitment to enforcing state law. He has previously stated that “prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public.”

Kalshi has not publicly responded to the latest ruling. After the initial restrictions, the company told customers, “We disagree with those restrictions, but as a law-abiding company, we’re following them.”

Dispute Over Federal vs. State Authority

At the center of the case is a disagreement over whether Kalshi’s contracts should be regulated as financial instruments or as gambling. The company maintains that its products qualify as “swaps” overseen by the Commodity Futures Trading Commission (CFTC), which it argues has exclusive jurisdiction.

The judge rejected that position, stating that placing money on event outcomes through Kalshi mirrors betting through licensed operators in Nevada. This interpretation aligns with the state’s stance that such activity requires compliance with its gaming regulations.

Nevada remains the only state with a court-enforced ban currently in effect against Kalshi. Meanwhile, other jurisdictions have taken different approaches, contributing to a fragmented legal landscape. In Massachusetts, a similar injunction is on hold pending appeal. In New Jersey, a federal appeals court recently ruled in favor of Kalshi in a separate case, potentially limiting that state’s regulatory reach.

Legal Battles Expand Across Multiple States

Kalshi is involved in a growing number of legal disputes nationwide. Arizona has filed 20 misdemeanor charges against the company, alleging it accepted unlicensed wagers. A federal judge recently held a hearing on Kalshi’s attempt to dismiss those charges. Washington has pursued civil action, citing violations of gambling and consumer protection laws.

Other states have also taken action. Ohio denied Kalshi’s request for an injunction against its gaming regulator, while Tennessee temporarily allowed the company to continue operating as a case proceeds. In Nevada, additional legal proceedings are scheduled, including an April 16 hearing at the 9th Circuit Court of Appeals involving Kalshi and other platforms.

The broader conflict has drawn attention from legal observers. Gaming attorney Daniel Wallach noted that Nevada’s approach may influence other states. “If [other] states had retained outside counsel and/or filed suit first in state court rather than sending [cease and desist] letters to Kalshi, there likely would not be any sports-event contracts today,” he wrote.

As regulators and companies continue to clash, the outcome of these cases could shape how prediction markets operate across the United States. For now, Kalshi remains sidelined in Nevada, with further legal decisions expected in the coming weeks.