Kalshi has won a temporary reprieve in Nevada, allowing the company to continue offering event-based sports contracts in the state.
This follows a decision by the US District Court for the District of Nevada, which ruled on Tuesday against a motion by the Nevada Gaming Control Board (NGCB) seeking an injunction to prevent Kalshi from offering its sports contracts in the state.
The court did approve a request by Kalshi for a temporary restraining order against the NGCB, allowing the company to continue with this type of contract in Nevada until the next hearing in the case, which is scheduled for April 30.
Kalshi argues that it operates under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), which is the federal regulator for all futures markets.
On the other hand, Nevada and other states with regulated sports betting markets, including Illinois, New Jersey, Ohio and Maryland, argue that contracts based on the outcome of sporting league play or sporting events constitute sports betting under state laws.
The CFTC will hold a roundtable discussion at the end of this month to review the findings of its recent consultations on sports contracts.
Those responses have been varied, with sports leagues expressing a general indifference to the CFTC authorising sports contracts, but on the understanding that they would be subject to the same integrity safeguards as regulated sportsbooks.
Native American tribes with gaming interests have asked the CTFC to confirm that all sports event contracts are prohibited, arguing that to do otherwise would interfere with the sovereign right of tribes and states to exercise their power to regulate gaming within their respective territories.