Amid the legal troubles, Kalshi was temporarily banned from Nevada

Kalshi is not having a great week. On Tuesday, Arizona’s attorney general filed a lawsuit 20-count crime against the online betting market, accusing it of operating an illegal gambling business. Now, another state in the Southwest has turned the company upside down: A judge in Nevada has temporarily banned the project from operating there as part of an ongoing court case brought by state regulators.

Nevada, on behalf of the Gaming Control Board, sued Kalshi in February in an attempt to prevent the prediction center from working. Officials confirm that Kalshi has failed to obtain the appropriate gaming licenses that would affect the type of betting its users are doing and that, by allowing users under the age of 21 to use its services, it is violating state laws.

Earlier this month, the government requested a temporary ban on Kalshi as part of the ongoing legal proceedings. In federal court Friday, Judge Jason D. Woodbury granted the state’s request and scheduled a hearing on the ban early next month. court documents show.

In his statement, Woodbury wrote that Kalshi did not have a license under the Nevada Gaming Control Act and that, based on Kalshi’s policy of taking commissions from contracts purchased through his system, it was clearly a “percentage game” (which the state bought). defines it as gambling).

Kalshi has argued that, because of its registration with the Commodity Futures Trading Commission, it is under the jurisdiction of the federal agency, which must override state law, court documents show. However, Woodbury noted that the issue of whether federal law trumps state law is still unsettled, but the courts are not leaning on it.

Kalshi declined to comment on the development when contacted by TechCrunch. Wired first report at the judge’s decision. Reuters he says Nevada had already convinced judges to ban Kalshi’s competitors like Coinbase and Polymarket.

The Nevada lawsuit involving the betting market is one of a growing number of lawsuits around the country that seek to allege that sites like Kalshi and Polymarket are illegal activities that violate gambling laws.

In contrast, federal officials have now positioned themselves as protectors of the video industry. News: Following Arizona’s decision to indict Kalshi earlier this week, CFTC chairman Mike Selig came out against the decision, online delivery: “The Arizona Attorney General today filed a lawsuit against one of our registered markets related to predictions. This is a jurisdictional dispute and is not at all appropriate as a lawsuit. @CFTC It is closely monitoring this and evaluating its options.”

The increasing hostility of the authorities and the laxity of the CFTC have ensured a constant battle between the states and the government over the future of the futures markets.