Nevada Extends Kalshi Ban: Details

Nevada judge Jason Woodbury extended the ban preventing Kalshi from offering event-based contracts in the state and ruled that these products constitute unlicensed gambling under state law. Announcing that he issued a preliminary injunction at Friday’s hearing in Carson City upon the request of the Nevada Gaming Control Board, the judge prohibited the company from offering bets on the outcomes of sports, election, and entertainment events to Nevada residents. According to Reuters, the decision extends the temporary restriction from March 20 to April 17.

Kalshi notional volume. Source: Kalshi

New York-based Kalshi defended its contracts as financial derivatives under CFTC supervision, but the judge rejected this argument, stating that the platform is substantively indistinguishable from sports betting. This case marks the first time a state has obtained an injunction against Kalshi through the courts. Utah state also passed a law targeting Kalshi and Polymarket last month. CFTC Chairman Michael Selig stated that they will defend the authority of prediction markets in court.

Main Reasons for Nevada’s Kalshi Ban

Judge Woodbury: Event contracts are viewed as unlicensed gambling.
CFTC-approved derivatives are caught by state gambling laws.
First state court victory; Utah took a similar step.
Ban extended until April 17, sports/election betting prohibited.

Will BTC Futures Be Affected by the Kalshi Decision?

Kalshi’s binary option-like contracts, although CFTC-regulated derivatives, were deemed gambling in Nevada. This could impact crypto derivatives markets. For products like BTC futures, check the details of BTC futures. Blockchain-based platforms like Polymarket offer crypto alternatives, but state regulations are increasing. For the BTC spot market, detailed BTC analysis is recommended.