Nevada Sues Kalshi After Appeals Court Clears Way

Nevada has sued Kalshi after the US Court of Appeals for the Ninth Circuit denied the company's bid to block action by the state's gaming regulator. The ruling removed a block on the Nevada Gaming Control Board, which promptly filed a civil enforcement action seeking to stop Kalshi from offering what it called unlicensed wagering.

Kalshi responded by filing a motion to move the case to federal court, repeating its claim that it falls under the Commodity Futures Trading Commission's exclusive jurisdiction. The decision and the new suit mark a setback in Kalshi's nearly year-long fight with Nevada; similar legal challenges have been brought by other states.

The Gaming Control Board says Kalshi's sports event contracts allow users to wager on outcomes and therefore meet licensing requirements under Nevada law, while Kalshi is not licensed and does not comply with state gaming rules. In federal court filings the company argued the situation requires a narrow interpretation of federal commodity exchange laws.

United States, Nevada

nevada, kalshi, ninth circuit, nevada gaming, civil enforcement, unlicensed wagering, cftc, federal court, sports contracts, licensing requirements