Kalshi’s Legal Battle with Nevada Gaming Authorities Continues
The legal dispute between Kalshi and Nevada’s gaming authorities is set to proceed. On June 3rd, a federal judge rejected the State of Nevada’s request to dismiss Kalshi’s lawsuit, allowing the case between the platform and regulators such as the Nevada Gaming Control Board (NGCB), the Nevada Gaming Commission (NGC), and the Attorney General of Nevada to move forward.
Judge Andrew Gordon of the U.S. District Court stated that Kalshi had filed a legally sufficient claim. He dismissed the state’s arguments for dismissing the lawsuit, which included claims of procedural errors, insufficient addressing of the State of Nevada as the defendant, or immunity based on the Eleventh Amendment of the U.S. Constitution.
The rejection of the dismissal request also means that the preliminary injunction remains in effect. This injunction temporarily prohibits Nevada authorities from taking enforcement action against Kalshi while the case is still under consideration. Kalshi previously won a similar lawsuit against the state of New Jersey.
Kalshi argues in its case against Nevada authorities that its trading platform falls exclusively under federal law, specifically the Commodity Exchange Act (CEA), and is therefore not subject to Nevada’s gambling laws. According to Kalshi, its operations do not fall under the definition of gambling as defined in Nevada, and it is exempt from licensing and compliance obligations.
Nevada regulators disagree. They argue that Kalshi’s contracts closely resemble sports betting and therefore fall under state supervision. In their view, Kalshi and similar providers must comply with Nevada’s gambling regulations.
Nevada Resort Association Allowed to Intervene
In addition to the decision on the dismissal request, the judge also granted permission for the influential Nevada Resort Association (NRA) to officially intervene in the case. The NRA represents major casino resorts in the state and aims to defend the existing regulatory model.
The industry association stated in its request that allowing providers like Kalshi to operate without complying with Nevada’s gambling laws would lead to unfair competition. The NRA fears that this would not only jeopardize economic stability but also undermine the oversight of the gambling industry.
In 2024, legal bookmakers in Nevada processed more than $7.8 billion in sports bets, the NRA emphasized. According to the organization, allowing competing bets outside the regulated framework could disrupt the entire gambling market in Nevada. Judge Gordon ruled that the interests of the casino resorts were sufficiently compelling to justify participation in the case.
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