Shelly Sigars XCQU

#Kalshi’sDisputewithNevada Kalshi’s dispute with Nevada is over whether its prediction market contracts are *federally regulated financial products* or *unlicensed sports gambling* under state law. *The core issue* *Kalshi’s position*: We’re a CFTC-regulated “designated contract market”. Our sports/event contracts are swaps/financial instruments, so federal law preempts state gambling rules. States can’t ban us. *Nevada’s position*: Kalshi’s sports contracts are “indistinguishable” from traditional sports betting. You’re taking bets on games without a Nevada gaming license, which violates state law. *What’s happened in Nevada so far* 1. *March 2025*: Nevada Gaming Control Board sent Kalshi a cease-and-desist order to stop offering sports-related contracts. 2. *March 20, 2026*: Carson City District Judge Jason Woodbury issued a 14-day temporary restraining order blocking Kalshi from operating in Nevada without a license. 3. *April 3, 2026*: Judge Woodbury extended the ban with a preliminary injunction. He said Kalshi’s contracts are “indistinguishable” from placing a $100 bet with a licensed sportsbook, so it’s “gaming activity that is prohibited for any non-licensee”. 4. *Nov 26, 2025*: Chief Judge Andrew Gordon in federal court also ruled Kalshi is subject to Nevada gaming rules, lifting an earlier injunction that had protected Kalshi. He denied Kalshi’s motion for stay in December 2025. 5. *Current status*: Nevada is the only state with a court-enforced, in-effect ban against Kalshi. The ban covers sports, elections, and entertainment contracts. *Why Nevada matters* Nevada has outsized influence because it’s a leader in gambling regulation and gaming is crucial to its economy. The state argues Kalshi doesn’t comply with key safeguards: no under-21 protections, no controls against insider betting by players, no match-fixing prevention.