The State of Nevada has initiated a civil enforcement lawsuit against Kalshi after the US Court of Appeals for the Ninth Circuit denied the company’s attempt to block regulatory action tied to its sports event contracts. The lawsuit, filed by the Nevada Gaming Control Board, alleges the platform is offering unlicensed wagering products in violation of state gaming laws.
Kalshi has moved to shift the case to federal court, maintaining that its event contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission rather than state-level gaming authorities. The dispute highlights a broader legal tension over whether prediction markets should be regulated as derivatives or gambling products.
From a regulatory perspective, the case reflects increasing scrutiny of event-based contracts across multiple US states. The outcome could influence jurisdictional boundaries between federal commodities oversight and state gaming enforcement, with potential implications for fintech, crypto-adjacent platforms, and the broader digital derivatives market.
