A federal appeals court has authorized Nevada authorities to enforce a temporary restraining order against Kalshi, prohibiting the trading of sports event contracts.
In March, the Nevada Gaming Control Board issued a cease-and-desist order to Kalshi, arguing that its sports event contracts constituted unlicensed sports betting under Nevada law.
Kalshi contended in court that its event contracts fall exclusively under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) and that any block on its contracts would cause it "imminent harm."
Kalshi Foresees Conflicting Rulings
In its March 13 motion, Kalshi noted that allowing Nevada to continue enforcing its temporary restraining order while federal litigation is ongoing risks the creation of severely conflicting rulings.
Kalshi stated that the court could reach "diametrically opposed conclusions" on whether federal commodities law preempts state gaming laws, adding that this could "create jurisdictional chaos."