Nevada Court Rules Kalshi Event Contracts Align With Gambling Laws

A Nevada judge has extended a ban on Kalshi, ruling its event contracts are indistinguishable from illegal gambling.

Judge Jason Woodbury issued a preliminary injunction against Kalshi in Carson City on April 3, 2026.

The Nevada Gaming Control Board successfully argued that event contracts require a state gaming license.

Kalshi must implement mandatory geofencing by May 4, 2026, to block all Nevada-based participants.

The court rejected Kalshi’s argument that its products are “swaps” falling under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC). Judge Woodbury noted that purchasing a contract tied to a game outcome is functionally identical to placing a wager at a licensed sportsbook, stating that “no matter how you slice it, that conduct is indistinguishable” from gaming activity.

Kalshi now has until May 4, 2026, to implement strict geofencing and geolocation controls to prevent Nevada users from accessing its markets. The company has indicated plans to appeal the decision, as it continues to face similar legal pressure and criminal charges in other jurisdictions, including Arizona. “We are disappointed in the court’s decision, but we will continue to work with regulators to find a path forward,” said Tarek Mansour, Chief Executive Officer of Kalshi.