Kalshi Bats .500; Prediction Market Operator Gets Stay in Massachusetts, Turned Down for One in Nevada
Nevada wastes little time after Ninth Circuit's decision Tuesday to block Kalshi's sports offerings
Kalshi earned a split in courtrooms on both sides of the country Tuesday, as the Massachusetts Appeals Court granted the prediction market operator a stay on an injunction handed down by a lower court in that state earlier this month. However, a federal appeals court denied a similar request for relief in Nevada, where Klashi now faces state enforcement action.
Those were the latest twists in a case where the Trump Administration’s Commodity Futures Trading Commission has stepped up its offensive in support of Kalshi and other operators seeking to offer contracts on sporting events. Contracts on sporting events, which began in early 2025, represent a significant expansion in operators’ catalogs of offerings for prediction markets. That has led to several states taking Kalshi and other operators to court and vice versa.
Gaming attorney Daniel Wallach described Tuesday “the most frenetic day in PM history,” in a post on social media platform X.
Massachusetts Court Wants Expedited Appeal
In Massachusetts, the appeals court’s decision means Kalshi does not have to implement Suffolk Superior Court Judge Christopher Barry-Smith’s Feb. 6 order that gave the company 30 days to stop offering contracts on games or individual performances. The order would not have forced Kalshi to liquidate any previously purchased contracts, although traders holding those could not expand their holdings.
The defendant’s motion for a stay pending appeal is allowed pending further order of this court or a single justice thereof,” read the docket entry posted on the Superior Court case. “Without suggesting any view on the merits or the disposition of this litigation, the defendant’s appeal is ordered expedited.”
The appeals court ordered Kalshi to submit its appeal within two business days.
Ninth Circuit Not Swayed By Selig For Now
Kalshi was hoping for a similar ruling from the U.S. Court of Appeals for the Ninth Circuit after it filed for an emergency stay last Tuesday. It did so after Nevada officials informed the appellate court they would seek action against Kalshi as soon as this week.
In Kalshi’s filing, its lawyers said the appellate court would “have the benefit of the CFTC’s views” in making its ruling.
Recently installed CFTC Chair Mike Selig has made it clear where the Trump Administration stands on prediction markets expanding their offerings. In addition to filing the amicus brief in support of Kalshi in the appellate court, not yet available with the case on the court’s website although a copy was available on the CFTC’s website, Selig wrote an op-ed in Monday’s Wall Street Journal. On Tuesday, he appeared on Fox Business News and posted on social media platform X in support of the operators.
American prediction markets aren’t new,” Selig wrote in one post on X. “They have been regulated by the CFTC for more than two decades and serve legitimate economic purposes. These markets have changed the way people consume news, monitor events, engage in politics, and can be more accurate than competing products.”
While prediction markets are not new, Kalshi has been aggressive in expanding its catalog since winning a 2024 court case allowing it to offer contracts on elections and other political events. It began offering sports events on its site early last year. Those opposing the expansion have cited federal law on exchanges that says the CFTC “may determine” contracts involving gaming go against the public interest.
The appeals court’s one-sentence announcement denying the stay did not give any reasons for the decision. However, the federal appeals court could still grant relief to Kalshi.
Nevada Wants ‘Unlicensed Wagering’ Stopped
Less than three hours after the court turned down Kalshi, the Nevada Attorney General’s office announced state gaming regulators had filed a civil enforcement action against the operator.
In a statement released Tuesday, the Nevada Gaming Control Board said it is asking the Carson City District Court for an injunction to stop Kalshi from “offering unlicensed wagering” in the state. The NGCB added it considers contracts on sports and “certain other” events the same as wagering. As such, anyone offering those must obtain a state license.
“The Board continues to vigorously fulfill its obligation to safeguard Nevada residents and gaming patrons, and uphold the integrity of a thriving gaming industry,” NGCB Chairman Mike Dreitzer said in the statement.
Andrew Kim, an appellate attorney tracking the prediction market lawsuits on X, posted that Kalshi is seeking to have the NGCB’s case moved to federal court.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
