Kalshi opposes Nevada regulators’ emergency bid to lift trading injunction

KalshiEX, LLC (Kalshi) has filed a brief response opposing Nevada regulators’ request for an emergency review of their effort to lift a preliminary injunction. The injunction currently lets the company keep offering event contract trading in the state. The filing follows a motion submitted by the Nevada Gaming Control Board on Friday (October 17), asking the court to end the injunction and stop Kalshi from offering those event contract lines.

The predictions provider has been relying on the injunction and its oversight by the federally regulated Commodity Futures Trading Commission (CFTC) as part of its defense in court cases in Nevada, Maryland, and several other states.

In its filing reviewed by ReadWrite, Kalshi stated that the defendants “have failed to meet their burden to demonstrate that emergency consideration is warranted.” The company argued that Nevada’s motion “should be heard in the standard course,” adding that emergency motions are “disfavored because of the numerous problems they create for the opposing party and the court resolving them.”

The preliminary injunction, issued on April 9 of this year, found that Nevada’s restrictions on Kalshi’s exchange operations were overruled by the Commodity Exchange Act. The court decided that Kalshi’s activities fall under the exclusive authority of the CFTC. The state’s new motion follows an October 14 ruling in a separate case involving the North American Derivatives Exchange (Nadex), which held that event contracts “that turn on the outcome of an event are not swaps within the CFTC’s exclusive jurisdiction.”

Kalshi contended that the issues raised in Nevada’s motion are “novel, substantial, and important,” and therefore merit “ample attention from, and full consideration by, the parties, and the Court.” The filing further asserted that the defendants had not shown they would be “irreparably prejudiced” by proceeding under a standard briefing schedule, noting that “the preliminary injunction in question has been in place for nearly six months.”

Kalshi said by stating that it “will respond to the substance of Motion to Dissolve in due course on the schedule ordered by the Court.” The response was filed on Sunday (October 19) by attorneys from Bailey Kennedy and Milbank LLP.

JUST IN: Kalshi files limited response to Nevada's emergency motion to dissolve preliminary injunction, says defendants have "failed to meet burden to demonstrate that emergency consideration is warranted" and it will "respond to the substance of Motion" as ordered by the Court. https://t.co/aepk72uVIL pic.twitter.com/8ldnA28DHt

— Daniel Wallach (@WALLACHLEGAL) October 20, 2025

However, legal expert Daniel Wallach pointed out that Kalshi asked the U.S. District Court to issue a permanent injunction and declaratory relief against the Ohio Casino Control Commission, or OCCC. In the case filed on October 7, Kalshi also submitted a memorandum requesting an emergency temporary restraining order and a preliminary injunction.

Featured image: Kalshi / Canva

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