Kalshi has secured a significant legal victory that allows it to continue offering sports markets in Nevada. US District Court Judge Anthony Gordon delivered a comprehensive ruling expanding on his decision from April 8, granting Kalshi a preliminary injunction against the Nevada Gaming Control Board. "Kalshi has shown a likelihood of success on the merits," Judge Gordon stated in his 17-page ruling, emphasizing that the defendants failed to prove any success with their request for injunctive relief, leading to the denial of their motion.
This ruling marks yet another triumph for Kalshi, following a critical win in the US Court of Appeals last October against the Commodity Futures Trading Commission (CFTC), which permitted the company to offer election contracts ahead of the 2024 US presidential election. The CFTC has since appealed this decision to the DC Circuit Court of Appeals, a verdict that could also affect Kalshi's current situation.
Judge Gordon’s ruling serves as the initial step in a new series of legal challenges for Kalshi, as the CFTC-registered exchange seeks to counter cease-and-desist orders from various state gaming regulatory bodies. In addition to this Nevada case, Kalshi has filed a similar lawsuit in March against the New Jersey Division of Gaming Enforcement, with a brief due from the DGE by April 18 and a follow-up reply due shortly after. This matter is set for a hearing on April 30.
Kalshi has also faced cease-and-desist letters from gaming regulatory agencies in Illinois, Maryland, Montana, and Ohio, although it has not initiated legal actions in these states as of yet.
Essentially, Gordon’s ruling allows Kalshi to maintain its operations with sports-related event contracts in Nevada while the ongoing legal process unfolds. The ruling also indicates that the first federal judge addressing Kalshi’s arguments found them convincing—that the company is federally regulated and thus not bound by state-level licensing for traditional sportsbooks.
