Nevada Blocks Kalshi Prediction Markets in Temporary Ban

On Friday, Nevada won a temporary restraining order that now prevents Kalshi, a prediction-market platform, from offering contracts related to sports, elections, and entertainment. 

The Fallout of the Restraining Order

With this ruling, Kalshi must now obtain all required state gambling licenses and must also prohibit all players under 21 from using its platform to offer those contracts, per Nevada's First Judicial District Court. 

The ban lasts 14 days, and a hearing will be held on April 3. 

On Saturday, Kalshi sent an email to users confirming the ban. As for customers, they can either sell their positions or wait for them to resolve, but they cannot buy new ones.

All this being said, markets related to the weather or crypto are available. 

Growing Legal Battle Over Prediction Markets in the US 

In addition to Nevada and Ohio, other US states have taken action against prediction markets. They do offer contracts on things like the weather, but they also do for sports, too, which competes with legal sports betting platforms like DraftKings and FanDuel. 

Other states that have taken action against these prediction platforms include Massachusetts, Michigan, and Arizona. 

For Kalshi, it maintains the position that its contracts fall under the oversight of the Commodity Futures Trading Commission. Meanwhile, states like Nevada say they're unlicensed gambling platforms and must comply with local laws. 

We'll see what happens at the hearing in April.