Key Takeaways
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Judge Jason Woodbury issued a preliminary injunction against Kalshi in Carson City on April 3, 2026.
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The Nevada Gaming Control Board successfully argued that event contracts require a state gaming license.
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Kalshi must implement mandatory geofencing by May 4, 2026, to block all Nevada-based participants.
Nevada Court Rejects Federal Swap Defense
Judge Jason Woodbury of the First Judicial District Court in Carson City ruled on Friday that the event contracts offered by Kalshi, a New York-based prediction market, constitute unlicensed gambling. The decision extends a temporary restraining order (TRO) originally issued on March 20, 2026, effectively barring the platform from offering sports, entertainment, and election-related contracts to Nevada residents.
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.