(AsiaGameHub) –   Kalshi, a provider of prediction market services, has had its ban upheld by a state judge in Nevada. The State of Nevada asserts that the services offered by Kalshi are gaming-adjacent and fall under the scope of gambling regulatory rules.

Judge Jason Woodbury of the First Judicial District Court based in Carson City has ruled to issue a preliminary injunction that prevents Kalshi from selling contracts tied to sporting events, all types of entertainment events, and elections unless it holds a valid gaming license issued by the State of Nevada.

Judge Woodbury issued the temporary restraining order (TRO) on the grounds that the court determined purchasing contracts linked to a specific sporting event is nearly identical to placing wagers through a licensed casino or bookmaker. The court’s ruling also challenges Kalshi’s claim that its products qualify as federally regulated “swaps” under the oversight of the Commodity Futures Trading Commission.

Speaking on this latest development, U.S. Gaming Law and Sports Betting Attorney Daniel Wallach called the ruling a key milestone for state regulators, writing on LinkedIn:

Major win for Nevada, which now joins Massachusetts as the first two states to obtain a preliminary injunction against Kalshi.

The legal landscape across the country remains highly fragmented www.bcljs.com, with Nevada being one of just a small number of states with an active court-ordered ban on offering Kalshi services. The regulatory environment for this space still remains fragmented in nature.

The Nevada Council on Problem Gambling and the Dr. Robert Hunter International Problem Gambling Centre submitted amicus briefs to the Ninth Circuit Court of Appeals regarding the risks connected to the accessibility, transaction speed, and product design of the products and services available via Kalshi.