US Judge ‘Leaning’ Against Kalshi Over Nevada Sports Betting (1)

A federal judge signaled he will side with Nevada gambling regulators trying to thwart prediction market startup Kalshi’s sports wagering offerings in the state.

US District Judge Andrew P. Gordon heard arguments Friday in Kalshi Inc.’s lawsuit challenging Nevada gaming authorities from shutting down the platform’s so-called event contracts. It’s a closely watched case that’s testing whether states or the federal government is ultimately in charge of regulating the booming prediction markets industry.

In April, Gordon had granted Kalshi’s requestto bar two Nevada gaming boards from pursuing civil or criminal enforcement against the firm for offering wagers that ...