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The dispute centres on Kalshi’s right to offer contracts based on sports and political events in the state, which the Nevada Gaming Commission (NGC) attempted to halt with a cease-and-desist order.

In a temporary reprieve for the company, US District Court Chief Judge Andrew P. Gordon issued a minute order on 8 April, granting in part Kalshi’s motion for a temporary restraining order (TRO) and preliminary injunction.

Judge Gordon’s order allows Kalshi to continue offering sports-related event contracts in Nevada during the ongoing litigation.

The court also denied counterclaims filed by the NGC, which had requested its own TRO and injunction aimed at immediately prohibiting Kalshi’s sports prediction market activities within the state.

Although the judge’s order did not include a comprehensive explanation, a more detailed written ruling is expected in the coming weeks.

For now, the decision provides Kalshi with legal breathing room as it continues its expansion into regulated markets across the US.

Kalshi, after previous legal wrangling at the federal level, operates as a designated contract market (DCM) under the oversight of the Commodity Futures Trading Commission (CFTC).

The company’s previous victory in a legal battle, against the CFTC in 2023, cleared the way for it to offer contracts based on political events, including US elections.

That case had challenged the legality and appropriateness of event-based markets focused on elections. After a federal court ruled in Kalshi’s favour, the firm subsequently began to expand its offerings into sports markets.

Multiple states unhappy with prediction markets

Kalshi’s sports event markets include contracts tied to outcomes of major athletic events such as the Super Bowl.

It also recently partnered with trading platform Robinhood to offer sports-related prediction markets during March Madness.

However, Kalshi’s expansion has drawn scrutiny and legal action from several state regulators.

To date, six states — Nevada, New Jersey, Illinois, Maryland, Ohio, and Montana — have issued cease-and-desist orders directed at Kalshi and other companies in the space, including Robinhood and Crypto.com, all of which have introduced markets based on sports events.

These states argue that the contracts amount to unlicensed sports betting and fall under their jurisdiction, despite Kalshi’s federal regulation.

The longer-term status of sports-related prediction markets is likely to be clarified by the end of May, when the CFTC is expected to complete its review of the practice.

The agency’s stance may shift depending on federal leadership and policy priorities. Although the CFTC opposed Kalshi’s previous efforts to list political event contracts, its current leadership has not yet finalised its approach to sports markets.

Kalshi makes strategic moves to strengthen position

Kalshi’s profile in both the regulatory and political spheres has increased markedly over the past year.

In January, the company announced the addition of Donald Trump Jr. as a strategic advisor, signalling a shift toward more aggressive political outreach.

The move aligns with Kalshi’s efforts to position itself as a legitimate and federally compliant operator of event-driven prediction markets.

In a further bid to strengthen its regulatory and industry ties, Kalshi has now recruited Sara Slane to serve as its head of corporate development.

In a LinkedIn post announcing her appointment, Slane stated: “Never in my career have I seen a company with the combination of characteristics that Kalshi has: bold vision, outlier founders, deep commitment to regulatory compliance, and astronomical growth.”

Slane brings extensive experience in navigating the intersection of sports, betting, and public policy.

Notably, she previously served as SVP of public affairs at the American Gaming Association (AGA), where she played a central role in advocating for the legalisation of sports betting.

Slane was instrumental in building cooperation between legal sportsbooks and major professional sports leagues following the US Supreme Court’s 2018 decision to overturn the federal prohibition on sports wagering.

At Kalshi, Slane will oversee public affairs, government relations, and liaison efforts with sports leagues and will report directly to Kalshi co-founder and CEO Tarek Mansour.