Kalshi just won a major round in court. The company can keep offering its event contracts in Nevada without worrying about state prosecution—at least for now. The ruling says the CFTC (Commodity Futures Trading Commission), not individual states, calls the shots when it comes to Kalshi event contracts.

  • Kalshi had been threatened with civil and criminal action by Nevada gaming regulators for offering contracts on elections and sports. The state argued Kalshi was operating an unlicensed sports pool, which violates state law. Kalshi fought back, saying those contracts are regulated under federal law via the Commodity Futures Trading Commission.

  • The federal court sided with Kalshi and blocked Nevada from enforcing its gaming laws against the company. Kalshi event contracts are currently allowed under CFTC rules, and the court ruled that federal oversight preempts state-level enforcement. The ruling prevents Nevada from disrupting Kalshi’s business while the case continues.

  • Even if Kalshi’s sports contracts count as “gaming,” that only triggers a special federal review process—not state intervention. The CFTC has not disallowed Kalshi’s sports-based contracts, and its prior attempt to ban election contracts was blocked by a federal court in 2024. That earlier ruling still stands.

  • The judge said other states sending cease-and-desist letters highlights why Congress gave the CFTC full control. A patchwork of state rules would make it impossible to operate a national exchange. Kalshi event contracts, traded on a federally designated platform, are protected from this type of state-level conflict.

  • The court said Kalshi showed a real risk of irreparable harm. Without the injunction, Kalshi would face legal threats or have to spend millions geofencing Nevada users. That could damage its reputation and even lead to penalties from the CFTC for restricting access to its exchange.

  • The judge noted that no Nevadans had filed complaints about Kalshi’s contracts, and that the state could still take action later if federal protections were lifted. For now, enforcing Nevada’s laws would likely violate federal supremacy and disrupt investor expectations tied to Kalshi event contracts.

  • Kalshi also won on the “public interest” factor. Cutting off access now would impact third-party traders and disrupt open contracts. According to court documents, the company warned that forced cancellation of contracts could harm users across the country.

  • The court acknowledged that if federal law changes or the CFTC reverses course, Kalshi might be in trouble later. But as of now, Kalshi event contracts are legal under federal rules, and Nevada must hold off. “Such policy issues are beyond the jurisdiction of this court,” the judge wrote.

  • The court imposed only a $10,000 bond, calling it de minimis, since Nevada likely won’t suffer damages during the injunction. The ruling formally went into effect following the April 8 hearing.

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