Kalshi lost another critical court battle in Nevada on Tuesday.
Key Takeaways
- Kalshi’s motion for stay was denied, dissolving the preliminary injunction in Nevada.
- A federal judge’s reasons were the same as his previous ruling.
- Kalshi could face criminal prosecution in Nevada.
The prominent prediction market platform’s motion for stay was denied by federal judge Andrew Gordon, upholding his existing order. This decision dissolved the preliminary injunction and leaves Kalshi vulnerable to legal enforcement from Silver State regulators.
In a cursory order, Judge Gordon denies Kalshi's motion for a stay pending appeal in Nevada. Kalshi may file what will likely be an emergency motion for a stay pending appeal in the Ninth Circuit. pic.twitter.com/sXd822YJzL
— Andrew Kim (@akhoya87) December 17, 2025
Kalshi, which is regulated by the Commodity Futures Trading Commission, is trying to operate in all 50 U.S. states, despite legal pushbacks in several.
Nevada, a legal sports betting jurisdiction, sent a cease-and-desist letter to Kalshi earlier this year because of trading exchange offers sports event contracts that regulators say clash with online and retail sports betting.
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Holding up the ruling
Gordon initially sided with Kalshi, but his most recent denial of Kalshi’s attempt to avoid potential state regulatory punishment comes weeks after he dissolved a preliminary injunction.
In his decision on the prediction platform’s short-term apparel on Tuesday, Gordon pointed to his previous ruling to justify his latest denial.
In his November ruling, Gordon stated that Kalshi “relies on strained reading of the already convoluted Commodities Exchange Act in an attempt to evade state regulation.”
However, Gordon said that the prediction platform’s “interpretation would require all sports betting across the country to come within the jurisdiction of the CFTC rather than the states and Indian tribes. That interpretation upsets decades of federalism regarding gaming regulation, is contrary to Congress’s intent behind the CEA, and cannot be sustained.”
What’s next?
Kalshi’s next legal step is to file a stay with the U.S. Court of Appeals of the Ninth Circuit, according to sports betting and gaming attorney Daniel Wallach. That ruling, Wallach said, could take several weeks.
Kalshi will now seek a stay from the Ninth Circuit. Filing imminent since Judge Gordon denied Kalshi's request for a "short-term" stay to give it time to seek a stay from the CA9. Without a stay, Kalshi is vulnerable to civil and criminal enforcement from Nevada. https://t.co/FK0Nr9fzAl
— Daniel Wallach (@WALLACHLEGAL) December 17, 2025
Should Kalshi fail in all of its attempts to remain legally operating in all 50 states, the company could face criminal charges in Nevada. Kalshi argues that even if it used a geofence to stay out of the Silver State, the prediction market platform would “face severe irreparable harm.”
Gordon said in his original dissolving of the preliminary injunction that the “balance of hardships does not tip in Kalshi’s favor.”
Battles rage on
Kalshi is facing legal battles in other states as well, including Ohio, New York, Connecticut, and Maryland.
The prediction market platform rose to prominence during the 2024 Presidential Election after it received a court ruling to offer political contract exchanges. In early 2025, Kalshi, which partnered with popular trading platform Robinhood, began offering sports contracts on the NFL, NBA, and other professional and collegiate leagues.
Kalshi has since evolved into sportsbook-like market options, giving users across the U.S. access to spreads and totals. This has led to state sports betting and gaming regulators taking action against Kalshi, which filed a lawsuit earlier this year against Nevada.
