Prediction market operator Kalshi has halted its Nevada operations after a state court extended a temporary injunction against the company. The First Judicial District Court in Carson City granted the Nevada Gaming Control Board's request, with Judge Jason Woodbury stating the order would be formalized imminently. Kalshi's argument—that its CFTC-regulated contracts qualify as financial swaps rather than gambling—failed to sway the court.

The legal setback compounds Kalshi's challenges across multiple jurisdictions. Arizona has initiated criminal proceedings against the firm, filing 20 misdemeanor counts tied to sports and election markets. These developments spotlight the tension between federal derivatives oversight and state gambling regulations—a conflict increasingly relevant as prediction markets intersect with traditional finance.