A federal judge has handed prediction market Kalshi a partial win in its legal fight with Nevada. It’s not a total victory though, as the bigger legal showdown is ongoing.
The lawsuit is about whether Kalshi has the right to offer contracts tied to sports and political events in Nevada. The Nevada Gaming Commission tried to shut it down by sending a cease-and-desist order.
Nevada, New Jersey, Illinois, Maryland, Ohio, and Montana have all sent cease-and-desist orders to Kalshi, Robinhood, and Crypto.com, each of which has been offering sports markets.
Judge sides with Kalshi granting temporary restraining order against Nevada
Kalshi/Nevada Update: The court GRANTS Kalshi's motion for a temporary restraining order/preliminary injunction IN PART. "The court will issue a written order."
h/t @DustinGouker, who saw the docket update first.
My guess is that "in part" is some sort of time limitation. pic.twitter.com/bNLj75y1ov
— Andrew Kim (@akhoya87) April 9, 2025
However, in a temporary break for the company, US District Court Chief Judge Andrew P. Gordon stepped in on Tuesday (Apr. 8) with a minute order that partially granted Kalshi’s request for a temporary restraining order (TRO) and preliminary injunction.
The judge also shut down the Nevada Gaming Commission’s counterclaims, which had asked for an immediate temporary restraining order and preliminary injunction to stop Kalshi from offering sports event contracts in the state.
Judge Gordon’s order gives Kalshi the green light to keep offering sports-related event contracts in Nevada while the legal battle plays out.
At the same time, the court rejected the Nevada Gaming Commission’s counterclaims, which had pushed for their own temporary restraining order and an injunction to immediately shut down Kalshi’s sports prediction markets in the state.
The order didn’t go into much detail, but a more in-depth written ruling is expected in the coming weeks.
A Kalshi spokesperson told Front Office Sports: “Today, the Federal Court in Nevada granted Kalshi’s preliminary injunction and blocked the State from trying to prevent Kalshi from offering prediction markets.
“We are grateful for the court’s careful attention to this matter and recognition of Kalshi’s status as a CFTC-regulated exchange. On to the next step.”
Even though the Commodity Futures Trading Commission (CFTC) regulates Kalshi, the body is currently still reviewing whether sports-based prediction markets will be able to continue.
ReadWrite has reached out to Kalshi and the Nevada Gaming Commission for comment.
