Nevada's First Judicial District Court issued a temporary restraining order on March 20 barring Kalshi from offering event contracts tied to sports, elections, and entertainment in the state — the first time a US state has actually forced the prediction market platform to shut down operations.

The 14-day order, set to run through April 3, came after months of legal back-and-forth between Kalshi and the Nevada Gaming Control Board. Previous attempts by states like Massachusetts to ban the platform were stalled in appeals; this time, Kalshi could not prevent the order from taking effect.

"Kalshi has repeatedly stated that its operations are legal in 50 states, which is clearly not true," said Mike Dreitzer, chair of the Nevada Gaming Control Board. The judge noted the state is "reasonably likely to prevail on the merits," suggesting a longer preliminary injunction could follow the April 3 hearing.

A Widening Regulatory Battle

The Nevada ruling is part of an accelerating clash between state gambling regulators and the CFTC. Dozens of states have filed suits against Kalshi, Polymarket, and other prediction market platforms, arguing they operate unlicensed sportsbooks. The platforms counter that event contracts fall under federal CFTC jurisdiction, not state gaming laws.

Arizona escalated the conflict further this week, filing criminal charges against Kalshi for allegedly running an illegal gambling operation. CFTC Chair Mike Selig quickly condemned the move as an "inappropriate criminal prosecution," signaling the federal agency may intervene.

Kalshi — recently valued at $22 billion following a $1 billion funding round — declined to comment. A Ninth Circuit hearing is set for April 16 that could unwind Nevada's state court enforcement.