TLDR Nevada Gaming Control Board sued Kalshi on Feb 17, 2026, to block it from offering sports prediction market contracts in the state The CFTC filed a brief the same day claiming it has exclusive jurisdiction over prediction markets A Massachusetts injunction against Kalshi was put on hold while Kalshi appeals Nevada argues Kalshi must be licensed under state gaming law, including age restrictions and anti-match-fixing rules Kalshi has moved to transfer the Nevada case to federal court, arguing the CFTC has sole jurisdiction
Nevada gaming regulators have filed a lawsuit against prediction market company Kalshi, saying it is operating illegally in the state by offering sports event contracts without a license.
The Nevada Gaming Control Board filed the civil enforcement action on February 17, 2026, in a Carson City court. It is asking for a declaration and injunction to stop Kalshi from continuing to operate.
Kalshi runs a derivatives exchange and prediction market where users can buy event contracts — financial products that let people bet on the outcome of events, including sports like football and basketball.
Nevada says that offering these sports event contracts counts as wagering activity under state law. That means any company doing so must hold a state gaming license.
The board says Kalshi has not met state requirements. Those include rules that ban anyone under 21 from placing wagers and require safeguards against insider betting and match fixing.
Kalshi is based in New York and disagrees with Nevada’s position. The company argues that its products are a form of swaps — a type of derivative contract — and fall under the exclusive authority of the federal Commodity Futures Trading Commission.
Shortly after the lawsuit was filed, Kalshi moved to transfer the case to federal court. It says the case is a