Kalshi Wins Temporary Restraining Order to Continue Operations in Nevada

Sports prediction markets got a much-needed win this week.

Kalshi has won a temporary restraining order that will allow it to continue operations in Nevada. The operator partnered with popular trading platform Robinhood to offer a March Madness prediction market this spring. Nevada recently issued a cease-and-desist letter to the partners, forcing the market to close. With the restraining order granted, they can resume offering these controversial markets.

The win for Robinhood and Kalshi is a bad sign for states. Several have already begun trying to push sports prediction markets out, but it appears they may not have the power. Since these markets are considered a form of trading instead of gambling, regulation would fall to the Commodity Futures Trading Commission (CFTC).

Nevada Representative Dina Titus has already expressed her opposition to sports prediction markets. She has been a long time ally of the state’s powerful gaming industry, which she believes is threatened by this gambling alternative.

Each state that legalizes sports betting includes a variety of requirements for consumer protections, responsible gaming, tax revenue, integrity safeguards, and anti-money laundering compliance,” Titus stated in a letter to the CFTC in February. “Authorizing sports contracts nationally via prediction markets would not include any of these important policy considerations.”

Many other lawmakers across the country have echoed Titus’s concerns, leading many states to follow Nevada’s lead and issue cease-and-desist letters of their own.

Kalshi Sees $500 Million Handle for March Madness

While Kalshi is now engulfed in legal battles, their March Madness prediction market saw a handle of around $500 million. While this will encourage other trading platforms to offer prediction markets, it could also feed their opposition.

Kalshi’s impressive handle shows its dent in the sports betting industry. That means they are taking money away from the states, operators, casinos, tribes, and more. Those groups have deep pockets and powerful allies at every level of government, meaning the March Madness market’s success may have actually hurt Kalshi over the next year.