Judge to Review NRA Request in Kalshi Gaming Lawsuit

A federal judge is preparing to make a quick decision on whether the Nevada Resort Association can step into the legal fight between Kalshi and the Nevada Gaming Control Board. The case centers on whether Kalshi’s event contracts should be treated as legal financial instruments or unlicensed gambling.

Good to know

• Kalshi argues its operations fall under CFTC rules, not state gambling laws.
• The NRA represents 70 casinos and fears financial disruption if Kalshi operates unchecked.
• Courts in New Jersey and Maryland have already blocked similar actions against Kalshi.

U.S. District Judge Andrew Gordon is handling the case, which began on March 28 when Kalshi sued the Nevada Gaming Control Board. Kalshi wants to continue offering prediction markets in Nevada without state interference, saying its platform is regulated by the Commodity Futures Trading Commission (CFTC) as a financial exchange, not a sportsbook.

On April 23, the Gaming Control Board filed a motion to dismiss the lawsuit. But shortly after, Judge Gordon issued a temporary restraining order to stop Nevada from shutting Kalshi down. Now, the court is deciding whether the Nevada Resort Association can officially join the dispute. Kalshi submitted its opposition to the NRA’s request on May 16, while the NRA has until May 28 to respond.

The Nevada Resort Association says Kalshi’s business could cause serious problems for the state’s gaming industry. In 2024, sports betting in Nevada generated $7.8 billion in wagers—all subject to regulations and taxes. The NRA warned that allowing Kalshi to operate freely could disrupt that system.

In its court filing, the NRA argued Kalshi’s users can place wagers that look just like regular bets—for example, betting $100 on the Las Vegas Golden Knights to win. The difference is that Kalshi’s platform does not pay taxes to Nevada or follow local gaming rules.

Kalshi insists it is not running a gambling service. The company, based in New York, views its platform as a legal financial market, supervised by the CFTC. It says this federal oversight allows it to operate in all 50 states, even in places like Utah and California where sports betting is not legal.

New Jersey and Maryland tried to block Kalshi as well, but in both states, courts ruled in Kalshi’s favor, stopping those enforcement actions.