Nevada regulators have filed a motion to dissolve a previously held injunction that allows Kalshi LLC (Kalshi) to continue offering event contract lines in the state.
This could be a significant threat to Kalshi, as the predictions provider has been utilizing this injunction and the federally regulated Commodity Futures Trading Commission (CFTC) as a defense against court action in Nevada, Maryland, and numerous other states.
Nevada regulators seek dissolution of Kalshi injunction
The injunction was upheld by US District Court Chief Judge Andrew P. Gordon earlier this year against the Nevada Gaming Commission. Though the motion was not a bulletproof solution for Kalshi, as other prediction providers would then move in to offer similar services and be scrutinized by state officials.
One of those competitors, Crypto.com, would then fall short of the Nevada courts and gaming commission, which brought Kalshi’s defence into question on the subject of sporting lines and event contracts.
The key reason for Crypto.com’s bid failing centred around occurrences and outcomes, with Judge Gordon again presiding, saying “I see ‘outcome’ as different than ‘occurrence, non-occurrence, or extent of contingency of occurrence.”
This meant the certification of an “outcome” on sports event contracts was now under serious scrutiny in the state of Nevada, leading to this most recent action by regulators to dissolve the existing injunction.
Kalshi’s federally regulated status under fire
Eagle-eyed gambling commentator and legal expert Daniel Wallach has spied the possible threat to Kalshi’s event contract security.
He posted the case details to social media, saying Kalshi “is not likely to succeed on the merits,” in its battle to avoid pre-existing sports gambling regulations by using the Commodity Exchange Act (CEA).
BREAKING: Nevada files an emergency motion to dissolve the preliminary injunction that was granted to Kalshi six months earlier, says that Judge Gordon’s denial of a PI in Crypto “now makes clear that Kalshi is not likely to succeed on the merits.” pic.twitter.com/zaEofCqgax
— Daniel Wallach (@WALLACHLEGAL) October 18, 2025
This means that event contracts, if they fall under a sporting prerequisite, would be subject to already-in-force sporting and gambling regulations.
Wallach commented that this is the case of Kalshi’s competitors, as the court in Crypto.com’s case concluded that the sports event contracts are not swaps under the CEA.
“Kalshi’s event contracts have the same key features as Crypto’s event contracts. They are wagers on the outcomes of sporting events—for example, whether a particular team will win a particular game,” said Wallach.
The state of Maryland has a near-identical argument against Kalshi, which Wallach cites as another thorn in the predictions provider’s side.
Since the time of the injunction, state regulators have also argued that Kalshi have used this extensive amount of leniency to offer new products and sports lines.
The Nevada Gaming Commission states these are “new types of sports event contracts that are indistinguishable from traditional sports betting,” means there could be a possible domino effect about to hit Kalshi in other states on the back of the injunction’s possible dissolution.
According to the court report, Kalshi has until October 27, 2025, to file a response brief, with a window for state respondents set initially for November 3, 2025, in this battle between state and federal oversight.
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