After US court rejects Kalshi request… Nevada files civil lawsuit

JOON HYOUNG LEE

Summary

The Nevada Gaming Control Board said it has filed a civil lawsuit against prediction-market platform Kalshi, citing violations of Nevada law and the provision of unlicensed gambling services.
With a US court denying Kalshi’s emergency request to temporarily suspend Nevada’s cease-operations order, Kalshi would have to immediately halt operations in Nevada if the state issues a temporary restraining order (TRO).
The US Commodity Futures Trading Commission (CFTC) said jurisdiction over prediction markets does not rest with state governments, suggesting that those who challenge the CFTC’s authority in this area will meet it in court.

The US state of Nevada has filed a civil lawsuit against prediction-market platform Kalshi.

According to Cointelegraph on the 17th (local time), the Nevada Gaming Control Board filed a civil suit against Kalshi the same day. Nevada said the lawsuit is “a measure to prevent (Kalshi) from providing unlicensed gambling services in violation of Nevada law.”

A US court on the day denied Kalshi’s emergency request to temporarily halt Nevada’s order to cease operations. As a result, if Nevada issues a temporary restraining order (TRO), Kalshi would have to immediately stop operating in the state.

However, the US Commodity Futures Trading Commission (CFTC) maintains that jurisdiction over prediction markets does not lie with state governments. CFTC Commissioner Summer K. Mersinger said on X that “those who seek to challenge the CFTC’s authority in this area (prediction markets) will meet us in court,” signaling the possibility of legal action.