Appeals court clears Nevada bid to block Kalshi sports contracts

The U.S. Court of Appeals for the Ninth Circuit on Thursday denied Kalshi’s emergency request to pause lower-court proceedings, clearing Nevada regulators to pursue a state court temporary restraining order that would block the platform’s sports-event contracts in the state.

The order allows Nevada authorities to proceed on a TRO while the broader federal case continues. Gaming attorney Daniel Wallach expects a restraining order in the near term that would bar Kalshi from operating in Nevada until at least a preliminary injunction hearing. In his view, “Since a TRO is not appealable under Nevada law, Kalshi would be required to exit the state in the interim.” TROs in Nevada typically last up to 14 days before a preliminary injunction hearing.

The Nevada Gaming Control Board issued a cease-and-desist letter in March, asserting that Kalshi’s sports-event contracts amount to unlicensed sports betting under state law. Kalshi argues its markets are federally regulated event contracts overseen by the Commodity Futures Trading Commission and that blocking them would cause “imminent harm.”

In a March 13 filing, Kalshi warned that allowing Nevada to advance a TRO while federal litigation is pending could yield conflicting rulings on whether federal commodities law preempts state gambling laws. The company wrote that courts could reach “exactly the opposite conclusion” and “create jurisdictional chaos.”

Prediction markets have drawn increased regulatory attention as trading activity grows. Public analytics tracking these platforms show weekly trading volumes consistently above $2 billion. Regulators in Connecticut, New York and New Jersey have pursued or examined actions related to sports-event contracts, and Kalshi and rivals including Polymarket, Crypto.com and Coinbase are contesting state restrictions in several venues.

The Ninth Circuit’s denial does not resolve whether Kalshi’s sports-event markets fall under federal commodities jurisdiction or are prohibited gambling under Nevada law. The federal case remains active, and any state preliminary injunction hearing would follow a TRO. A timetable for further hearings has not been released.

As we covered previously, Kalshi filed a federal lawsuit in Iowa on March 12, 2026, against Attorney General Brenna Bird and the Iowa Racing and Gaming Commission, alleging threats to stop its sports-event contracts. The filing cites a meeting with Bird, a written refusal to give enforcement assurances, and Bird saying she had been “looking at” Kalshi “for a long time.” Kalshi, a designated contract market, argues CFTC jurisdiction preempts states. Courts have split: Ohio denied relief, Massachusetts barred offerings, Nevada sued after an appeals court refused to halt state action, while New Jersey and Tennessee granted temporary blocks.