Kalshi Has Been Temporarily Banned in Nevada | WIREDSkip to main contentMenuSECURITYPOLITICSTHE BIG STORYBUSINESSSCIENCECULTUREREVIEWSMenuAccountAccountNewslettersSecurityPoliticsThe Big StoryBusinessScienceCultureReviewsChevronMoreExpandThe Big InterviewMagazineEventsWIRED InsiderWIRED ConsultingNewslettersPodcastsVideoLivestreamsMerchSearchSearchKate KnibbsBusinessMar 20, 2026 12:54 PMKalshi Has Been Temporarily Banned in NevadaA judge ordered Kalshi to immediately halt sports and election contracts in the state, intensifying a growing regulatory battle over prediction markets.Photograph: Samuel Boivin/Getty ImagesCommentLoaderSave StorySave this storyCommentLoaderSave StorySave this storyKalshi has been temporarily banned in Nevada, marking the latest escalation in the widening regulatory war over prediction markets. The First Judicial District Court of Nevada has issued a 14-day restraining order, effective immediately, barring the company from “offering a derivatives exchange and prediction market which offers event-based contracts relating to sports, election, and entertainment related events” without first obtaining gaming licenses.This may be the first time the company is forced to cease operation in a US state. Massachusetts previously obtained a similar temporary injunction, but Kalshi was able to continue operating there while it appealed the case. Kalshi declined to comment.This particular legal battle began just over a year ago, when Nevada regulators sent Kalshi a cease-and-desist letter demanding that it stop offering sports-related events contracts. That initiated a messy tug-of-war between plaintiffs and defendants as the case moved between state and federal court. Until now, Kalshi could keep operating in the state as its lawyers sparred with authorities in what the company has described as a “jurisdictional quagmire.”After the 14 days, the court will then assess whether to extend the ban for the duration of the court case. “The expectation here is that the judge will convert the 14 day TRO to a case-long preliminary injunction,” says gaming lawyer Daniel Wallach.The ruling comes after a particularly turbulent few weeks for Kalshi. On Tuesday, the Arizona attorney general brought criminal charges against the company, accusing it of running an illegal gambling operation. Just days earlier, Kalshi filed a lawsuit against Arizona state regulators preemptively challenging any effort to make it follow state gambling laws.Dozens of similar legal battles are underway across the country over whether prediction markets should be forced to abide by state gambling laws, including in Ohio, Tennessee, and Massachusetts.A number of prominent prediction market platforms, including Kalshi, offer sports-related contracts to people over 18 across the United States, even where state gambling laws prohibit sports betting. The result is that a 19-year-old in Utah can put money on the outcome of a soccer game through prediction markets, but not through sports betting, since the state outlaws it altogether. It also means that a 19-year-old in Indiana can make a similar prediction market wager, even though state gambling law prohibits people under 21 from placing bets. This has made a growing group of bipartisan lawmakers furious.Kalshi argues that its sports-related event contracts—where, for example, someone can wager on which team would win the Super Bowl or a particular March Madness basketball game—are not a form of betting. Instead, the company says they should be viewed as financial instruments known as “swaps.” So far, the federal government agrees. The Commodity Futures Trading Commission (CFTC), the US agency that oversees swaps and other derivatives markets, maintains that it has exclusive jurisdiction over prediction markets. The agency’s head, Michael Selig, has forcefully rejected claims that the industry should be subject to state gambling laws, telling critics that he will see them “in court.”The federal government’s stance hasn’t deterred various state attorneys and gaming commissions from continuing their legal fights—and they’ve recently notched some notable victories. In January, Nevada blocked Polymarket from operating within the state; the temporary restraining order is in place through April. It was a victory for the prediction markets-are-gambling side, albeit a limited one: While Polymarket does have a modest official US presence, the bulk of its trading volume takes place on its global exchange, which is technically blocked in the US but accessible to traders willing to use virtual private networks (VPNs) to get around the ban.Last week, a judge in Ohio rebuffed Kalshi after the prediction market company filed for a preliminary injunction to prevent state regulators from pursuing it for violating state gambling laws. In her order denying Kalshi’s motion, United States District Court for the Southern District of Ohio judge Sarah D. Morrison wrote that the court had an obligation to “avoid absurdity.”The court rulings, however, vary widely from state to state. Just a few weeks prior to Ohio’s smackdown, Kalshi scored a major win in Tennessee, when a federal judge blocked state regulators from going after the prediction market behemoth.The Supreme Court may wind up having the final say on the legality of these markets. In the meantime, Kalshi will be forced to cease operations in Nevada, one of the country’s biggest betting markets. But it’s not all bad news for the company. Before the ruling was announced on Thursday, Bloomberg reported that Kalshi recently raised another $1 billion from investors at a $22 billion valuation—which means, despite all the legal issues, the company has doubled its valuation since the end of 2025.Updated: 3/20/26, 12:50 pm PST: This story was updated to include further context about state lawsuits filed against Kalshi.CommentsBack to topTriangleYou Might Also LikeIn your inbox: WIRED's most ambitious, future-defining storiesThe Tesla influencers leaving the cultBig Interview: Kalshi’s CEO says he’s not running a gambling siteWill AI kill the venture capitalist?Livestream AMA: Big Tech and the military—have your sayKate Knibbs is a senior writer at WIRED. She covers prediction markets, the future of media, and how AI is changing the internet. She’s also interested in digital grey markets and regulatory battles over new tech. She is based in Chicago. Send tips to [email protected], or reach her on Signal ... 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Kalshi has been temporarily banned in Nevada, marking a significant escalation in the ongoing regulatory battle surrounding prediction markets. The First Judicial District Court of Nevada issued a 14-day restraining order, effective immediately, preventing the company from offering derivatives exchanges and prediction markets relating to sports, elections, and entertainment events without obtaining necessary gaming licenses. This represents, as stated by gaming lawyer Daniel Wallach, potentially the first instance of a U.S. state forcefully halting a company’s operations. Prior to this, Kalshi had been engaging in a protracted legal dispute with Nevada regulators, initiated when the state sent a cease-and-desist letter concerning its sports-related event contracts. This dispute involved multiple court filings and challenges between Kalshi and state authorities. The company had been operating under the assumption that this jurisdictional quagmire would allow its continued operation, but the court’s ruling abruptly halts that.

Following the 14-day temporary restraining order, the court intends to assess whether to extend the ban for the duration of the legal proceedings. The expectation is a conversion to a case-long preliminary injunction. This situation is compounded by recent events, including a criminal charge filed by the Arizona attorney general against Kalshi accusing it of operating an illegal gambling operation, and a preemptive lawsuit filed by Kalshi against Arizona regulators. This legal pressure is mirrored by similar battles underway across the country involving other prediction market platforms like Polymarket. The core issue centers on the classification of Kalshi’s event contracts – which involve wagers on outcomes like Super Bowl winners or March Madness basketball games – as betting versus financial instruments known as “swaps,” a distinction the Commodity Futures Trading Commission (CFTC) currently supports. Michael Selig, the CFTC’s head, has vocally defended the agency’s jurisdiction, dismissing claims that these markets should be subject to state gambling laws.

However, this federal stance hasn't prevented state attorneys and gaming commissions from pursuing their own challenges. Recent victories include Kalshi’s blockage in Nevada following a similar restraining order to Polymarket, and a defeat in Ohio where a judge denied Kalshi’s motion for a preliminary injunction. These rulings highlight the fragmented legal landscape surrounding prediction markets and the significant variation in interpretations regarding how they should be regulated. Kalshi’s recent $1 billion investment round, valued at $22 billion, demonstrates the continued confidence in the company’s strategy despite the legal pressures. Yet, the 14-day ban underscores the substantial risks confronting the company.