Kalshi stays live with sports markets in Nevada after court ruling

The momentum is building for Kalshi as it seeks to expand its betting offerings in Nevada and across the United States, particularly with events like The Masters on the horizon.

In a significant legal development, US District Court Judge Anthony Gordon issued a comprehensive ruling, elaborating on his earlier decision from April 8, granting Kalshi a preliminary injunction against the Nevada Gaming Control Board. This injunction supports Kalshi’s right to offer and trade contracts tied to sporting events, a move that has implications for the entire online betting landscape.

“Kalshi has demonstrated a substantial likelihood of success on the merits,” stated Judge Gordon in his 17-page ruling. “Conversely, the defendants have failed to establish a likelihood of success for their countermotion for injunctive relief, and thus, I deny their motion.”

This ruling marks a crucial legal triumph for Kalshi, following its key victory in the US Court of Appeals last October against the Commodity Futures Trading Commission (CFTC). This previous ruling enabled Kalshi to offer election-related contracts leading up to the 2024 US presidential election. The CFTC has since appealed this decision to the DC Circuit Court of Appeals, a ruling from which could have significant ramifications for Kalshi’s current situation.

Judge Gordon’s decision signals the beginning of a new phase in Kalshi’s legal strategy, as the CFTC-registered exchange aims to counter cease-and-desist orders from several state gaming regulatory agencies. Notably, Kalshi initiated a similar legal challenge in late March against New Jersey’s Division of Gaming Enforcement. The New Jersey DGE has a deadline of April 18 to respond, with Kalshi’s rebuttal due five days later, leading up to a hearing set for April 30.

In addition, Kalshi has received cease-and-desist letters from gaming regulatory agencies in Illinois, Maryland, Montana, and Ohio. However, the company has not yet taken legal action in these states.

Implications of the Ruling

At its core, Judge Gordon’s ruling allows Kalshi to continue its offering of sports-related event contracts in Nevada while the legal proceedings unfold. This is particularly noteworthy as it represents the first ruling by a federal judge addressing Kalshi’s argument of being federally regulated, thus not bound by state-level licensing norms applicable to traditional sportsbooks.

This development is likely to have far-reaching effects on the gambling industry, especially as new models of sports betting emerge and states grapple with regulatory frameworks. Kalshi’s case could serve as a pivotal precedent for other innovative betting platforms navigating similar regulatory challenges.

For more in-depth insights into the ongoing evolution of the US gambling landscape and the latest developments impacting the industry, stay connected with Casino Reports—your trusted source for critical news, features, and analysis concerning the regulated online casino and iGaming sectors.