Prediction markets platform Kalshi has won a temporary restraining order against the Nevada Gaming Control Board (NGCB), allowing it to continue operating in the state and preventing the NGCB from enforcing its March 25 cease-and-desist order.
U.S. District Court Chief Judge Andrew P. Gordon has granted, in part, Kalshi’s motion for a temporary restraining order and preliminary injunction against the NGCB.
The temporary ruling, made yesterday (April 8), allows Kalshi to continue operating.
The federal judge also denied the NGCB’s counter request for a temporary restraining order and injunction, which would have meant Kalshi had to stop operating in the so-called “Battle Born State” immediately.
Unlawful
The NGCB first issued Kalshi with a cease-and-desist order on March 25, stating that their sporting events and election outcomes were “unlawful in Nevada, unless and until approved as licensed gaming by the Nevada Gaming Commission”.
Following a similar order from New Jersey’s Division of Gaming Enforcement (NJDGE), Kalshi filed federal lawsuits against both the NGCB and NJDGE, challenging the right of the state regulators to prevent a federally regulated company from operating within their borders.
Kalshi’s CEO, Tarek Mansour, maintained the regulators had fundamentally misunderstood prediction markets and were undermining “the foundation of U.S. financial markets, which are regulated by the federal government”.
Judge Gordon’s “minute order”–aka first look ruling–has not been released in full, and there’s no timeline for the full hearing yet.
Still, the timing is key for Kalshi as the number of states lining up to ban the platform, having already issued cease-and-desist orders, continues to grow.
The number currently stands at six: Maryland, Nevada, Ohio, Montana, Illinois, and New Jersey.
Four additional states have also said they are openly investigating the platform.
Watch this space for updates.
