A Nevada judge has extended the ban on Kalshi's event-based contracts, dealing a blow to the platform's argument that its offerings qualify as financial derivatives under CFTC oversight. The ruling maintains that these contracts constitute gambling, requiring a state gaming license.

Judge Jason Woodbury dismissed Kalshi's federal preemption defense, asserting that wagering on sports or election outcomes fundamentally differs from regulated derivatives trading. The decision reinforces Nevada's stance that prediction markets must comply with local gambling statutes rather than financial regulations.

The injunction follows heightened scrutiny of event contracts globally, as regulators grapple with classifying speculative instruments at the intersection of finance and gaming. While Kalshi maintains its CFTC-registered status, the Nevada ruling creates jurisdictional uncertainty for prediction markets operating across state lines.