Kalshi, a prediction market platform, has initiated legal proceedings against Nevada, challenging the state's classification of its event-based contracts as sports betting. Kalshi contends that its contracts are federally regulated financial products under the Commodity Futures Trading Commission (CFTC), not subject to state gaming regulations. Nevada officials, however, argue that Kalshi operates sports pools requiring state licensing and oversight.

The dispute escalated after the Nevada Gaming Control Board issued a cease-and-desist letter, prompting Kalshi to seek a court ruling affirming CFTC's exclusive regulatory authority. The outcome could influence the regulatory landscape for prediction markets nationwide, affecting platforms like Crypto.com and Polymarket. A Nevada court hearing is anticipated by April 2.