Federal Court Allows Nevada to Temporarily Halt Kalshi Prediction Markets

A federal appeals court has ruled in favor of Nevada, permitting the state to enforce a temporary ban on the political event contracts offered by prediction market platform Kalshi. The decision reverses a lower court's injunction, clearing the way for state regulators to halt Kalshi's Nevada operations while the legal case proceeds. Kalshi, which allows users to trade on the outcomes of elections and other events, argued its contracts are not gambling but financial instruments. Nevada officials, however, contend they constitute illegal gaming under state law. This ruling represents a significant regulatory setback for the growing prediction market industry in the US, highlighting ongoing tensions between innovative fintech platforms and established state gambling regulations.