Nevada Moves to Shut Down Kalshi as Prediction Market Legal Fight Escalates
Nevada is escalating its fight with Kalshi, announcing plans to file a civil enforcement action, accusing the prediction market platform of aggressive expansion while ignoring gaming regulations.
Nevada’s Attorney General’s Office told the Ninth Circuit Court of Appeals it will file a civil enforcement action against Kalshi in state court on Feb. 17, ending a temporary pause on enforcement while Kalshi pursued a legal “stay.”
Nevada officials now say Kalshi failed to maintain the status quo. Instead, the company “continued to dramatically expand its business,” “massively increased its trading volumes,” and “aggressively (and wrongly) marketed its sports bets as ‘100% legal’ in ‘all 50 States,'” according to the filing.
Nevada Cites Ongoing Operations as Reason for Enforcement
According to the filing, state officials believe Kalshi is the only prediction market currently operating in Nevada. They argue its continued operation “harms the State and the public every day.”
Nevada says Kalshi offers sports betting while avoiding the “same rigorous regulations” required of licensed sportsbooks. The state contends this creates unfair competition and poses an “existential threat” to Nevada’s regulated gaming industry.
Nevada stressed that no court order blocks the enforcement of state law against Kalshi. Officials say delaying action would effectively grant Kalshi the stay it requested on Dec. 17. This comes despite the district court already ruling that Kalshi is unlikely to succeed on the merits and continues to cause irreparable harm.
For that reason, Nevada plans to file the civil enforcement action next week.
Nevada’s Battle With Other Operators
The state also noted that Robinhood and Crypto.com voluntarily stopped operating in Nevada while their appeals remain pending.
Nevada has already filed civil enforcement cases against Coinbase and Polymarket. State courts issued temporary restraining orders blocking both platforms. Judges said continued unlawful operations would cause “immediate injury to the state” that “cannot be mitigated.”
A Feb. 11 hearing will decide whether courts extend Polymarket’s shutdown beyond the initial 14 days.
Kalshi Not Slowing Down
The Attorney General’s Office says Kalshi has significantly expanded in less than four weeks since filing its stay motion.
Kalshi reported more than $500 million in Super Bowl trading volume. Its 30-day volume also surpassed $10 billion for the first time.
Nevada sportsbooks, by contrast, recorded their lowest Super Bowl betting handle since 2016. Bettors placed $134 million in wagers. That figure fell well below 2025’s $151.6 million and 2024’s $190 million.
Speaking to the Las Vegas Review-Journal, Westgate vice president of race and sports John Murray attributed part of the decline to a lack of star power in the matchup between the Seattle Seahawks and the New England Patriots.
Nevada argues that this growth diverts activity from licensed sportsbooks and undermines the state’s tightly regulated gaming ecosystem, creating what it describes as unfair competition for traditional operators.
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