Kalshi Faces Nevada Enforcement Hit

By Mrinal Gujare

23 Feb 2026

Mrinal Gujare 23 Feb 2026

Share this article

Ninth Circuit denies Kalshi's emergency stay request.
Nevada pushes to classify Kalshi's 'event contracts' as unlicensed betting.
Kalshi tries moving case to federal court; state seeks quick remand.

Image Credit: Kalshi Twitter

Nevada regulators have moved to shut down Kalshi after the Ninth Circuit denied an emergency stay.

Kalshi’s ambition to bridge the gap between financial markets and sports wagering has hit a significant roadblock in the Silver State.

Following a series of legal setbacks, Nevada regulators are moving to shut down the platform’s local operations, asserting that "event contracts" are simply unlicensed sports betting by another name.

Ninth Circuit denied Kalshi’s emergency request

The conflict intensified this week when the US Court of Appeals for the Ninth Circuit denied Kalshi’s emergency request for an administrative stay.

This temporary shield would have protected the company from state intervention while it appealed an earlier ruling. Without it, the legal floodgates opened.

Nevada’s gaming regulators wasted no time, filing a civil enforcement case in state court the same day the stay was denied.

This move signals a shift from theoretical jurisdictional debates to active, boots-on-the-ground enforcement.

Federal Markets vs. State Gaming Law

At the heart of the dispute is a fundamental question of identity:

Kalshi's View: Their contracts are financial instruments regulated under the federal commodities framework, which should preempt state-level gambling interference.
Nevada's View: If it looks like a bet and acts like a bet, it is a bet. The state argues that Kalshi is bypasssing the rigorous licensing and compliance standards required of all Nevada sportsbooks.

The "Removal" Tactic

In a bid to regain the upper hand, Kalshi moved the enforcement case from state court to federal court almost immediately. Nevada has characterized this as a stalling tactic designed to prolong operations.

The state is now pushing for an expedited remand, arguing that state law should dictate enforcement actions involving Nevada residents.

What Lies Ahead

The industry is now watching two parallel legal tracks:

The Merits Appeal: Can Kalshi secure a longer-term stay to keep its platform live during the appeal process?
The Venue Fight: Will the case be kicked back to state court, where Nevada can seek immediate injunctive relief to shutter the service?

This case represents a landmark moment for the "event contract" industry, testing whether federal oversight can truly shield innovative trading platforms from the long arm of state gaming commissions.