Nevada Gaming Control Board Seeks Contempt Ruling Against Kalshi

Nevada regulators are escalating their legal fight against Kalshi, asking a state court to hold the prediction market operator in contempt for allegedly continuing to offer prohibited event contracts despite an existing court order.

The Nevada Gaming Control Board (NGCB) filed a motion this week arguing that Kalshi violated a preliminary injunction that barred the company from offering certain event contracts to users in the state. Regulators are asking the court to impose significant monetary penalties and formally find the company in contempt.

The latest filing marks another chapter in one of the most closely watched legal disputes involving prediction markets, as states continue challenging operators that offer sports and other event-based contracts under federal commodities regulations.

Nevada Says Kalshi Ignored Court Orders

According to the NGCB, Kalshi continued making covered event contracts available to Nevada residents despite a court order requiring the company to stop offering those products in the state. The regulator argues that the alleged violations warrant both financial penalties and a contempt finding against the operator.

"The Court has required Kalshi to stop offering covered event contracts in Nevada," NGCB Chairman Mike Dreitzer said in a statement accompanying the filing. "We will continue to vigorously enforce Nevada law to safeguard gaming in our state."

The motion builds on a legal battle that began earlier this year when Nevada sued Kalshi, alleging that the company's sports, election, and entertainment event contracts constituted unlicensed gaming activity under state law. Regulators successfully obtained a temporary restraining order in March before securing a preliminary injunction that extended the restrictions.

Long-Running Dispute Over Prediction Markets

Nevada has consistently argued that sports-related event contracts function similarly to traditional wagering products and should therefore be subject to state gaming laws and licensing requirements.

Kalshi has maintained that its contracts fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), which regulates federally approved derivatives markets. That position has become a central issue in multiple legal disputes across the country as prediction market operators expand their offerings beyond economics and financial indicators into sports and other popular events.

Nevada courts have thus far sided with state regulators. Earlier rulings found that the NGCB had a reasonable likelihood of success in its claims that Kalshi's products fall within Nevada's definitions of regulated gaming activity. Those decisions allowed the state to continue pursuing enforcement actions while the broader case proceeds.

Read Also: CFTC Sues New Mexico in Escalating Prediction Market Dispute

Pressure Continues to Build on Kalshi

The contempt motion arrives as Kalshi faces growing scrutiny from regulators across multiple jurisdictions. Nevada remains one of the most aggressive states in challenging prediction market operators, arguing that the products compete directly with licensed sportsbooks while operating outside the state's regulatory framework.

The outcome of the contempt request could prove significant for both sides. A ruling in Nevada's favor would strengthen the state's enforcement efforts and increase pressure on Kalshi to comply with local restrictions while litigation continues. For Kalshi, the case represents another test of its argument that federally regulated event contracts should not be subject to state gaming oversight.

With state regulators, tribal gaming interests, and federal authorities continuing to clash over prediction markets, the Nevada case remains one of the industry's most important legal battles. The court's response to the contempt request could influence how aggressively other states pursue enforcement actions against operators offering similar products.