Nevada sues Kalshi as federal regulators defend prediction markets

Nevada Gaming Control Board and the state attorney general sued Kalshi in Carson City District Court, seeking an order to stop what they call an unlicensed sports-betting operation. The filing followed a federal appeals court’s rejection of Kalshi’s request to halt state enforcement; Nevada says the company is the country’s largest prediction market.

State regulators wrote that "Kalshi has continued to dramatically expand its business, rather than attempting to maintain any kind of status quo," noting the platform did 27 times as much business on Super Bowl Sunday this year as the year before while regulated Nevada gambling declined.

A Kalshi spokesperson declined to comment, and the company asked a federal court to take over the new state case, arguing that only federal law applies and that the dispute turns on issues already before federal courts. Kalshi has said its markets are "event contracts," a financial instrument regulated by the Commodities Futures Trading Commission.

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