A Nevada state judge has issued a temporary ban preventing prediction market platform Kalshi from operating sports and election contracts within the state, according to court documents filed this week.

The judicial order requires Kalshi to immediately cease its prediction market activities in Nevada, marking a significant escalation in the ongoing regulatory scrutiny facing the platform and the broader prediction markets industry.

Kalshi operates as a federally regulated prediction market that allows users to trade on the outcomes of various events, including sports competitions and political elections. The platform has been operating under oversight from the Commodity Futures Trading Commission (CFTC) at the federal level.

The Nevada ban represents the latest development in a broader regulatory battle over prediction markets, as state and federal authorities grapple with how to oversee these emerging financial instruments. Prediction markets have grown in popularity as platforms allow users to essentially bet on real-world events by buying and selling contracts based on expected outcomes.

The temporary nature of the ban suggests ongoing legal proceedings may determine the platform's future operations in Nevada. The ruling affects Kalshi's ability to offer its prediction contracts to Nevada residents, though the company continues to operate in other jurisdictions where it maintains regulatory approval.