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Appeals Court Lets Nevada Pursue Temporary Restraining Order Against Kalshi

Appeals Court Lets Nevada Pursue Temporary Restraining Order Against Kalshi

A Nevada court imposed a 14-day halt on Kalshi’s event contracts, expanding the dispute beyond sports into entertainment and election markets as state and federal authorities contest regulatory jurisdiction.

Fact Check
The statement is supported by multiple reputable news outlets reporting on the Ninth Circuit Court of Appeals' decision on March 19, 2026. The court denied Kalshi's emergency motion to stay state court proceedings, which clears the path for the Nevada Gaming Control Board to seek a temporary restraining order (TRO). Legal experts cited in the reports confirm that such a TRO would typically last at least 14 days and would target Kalshi's sports-related event contracts, which the state argues are unlicensed gambling while Kalshi maintains they are under CFTC jurisdiction.
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Summary

A Nevada state court issued a 14-day temporary restraining order barring Kalshi from offering event contracts in the state, including sports, entertainment and election bets, after a federal appeals court allowed Nevada regulators to pursue the action. The First Judicial District Court of Nevada said an unlicensed participant outside the Nevada Gaming Control Board’s authority obstructs the board’s ability to carry out its statutory functions, and set a follow-up hearing for April 3. Kalshi had argued the matter should remain in federal court and said it faced imminent harm from Nevada’s actions, but the appeals court sent the case back to the state. The dispute is part of a broader regulatory fight, as Arizona’s attorney general has also accused Kalshi of operating an unlicensed gambling business, while CFTC Chairman Mike Selig has argued that prediction markets fall under federal oversight rather than state control.

Terms & Concepts
  • Temporary restraining order: A short-term court order that temporarily blocks certain activity until a further hearing or legal decision takes place.
  • CFTC: The U.S. Commodity Futures Trading Commission, the federal agency that oversees derivatives markets and is asserting authority over prediction markets.
  • Prediction markets: Platforms offering contracts tied to the outcomes of future events, such as elections or sports results, rather than direct asset ownership.