The state of Nevada in the United States is suing to block Kalshi from operating a prediction market in the state.

The Nevada Gaming Control Board filed a lawsuit on Tuesday to stop the prediction market operator Kalshi from offering event contracts that allow residents of the state to bet on sports such as football and basketball. The lawsuit from the Nevada Gaming Commission is part of an ongoing battle nationwide among state gaming regulatory agencies on whether they have the authority to regulate companies like Kalshi that allow users to place financial bets through their prediction markets. On the same day the lawsuit was filed in Nevada, the U.S. Commodity Futures Trading Commission also expressed support for companies like Kalshi in related legal proceedings, arguing that the commission has exclusive jurisdiction over prediction markets. Kalshi has been trying to prevent regulatory action by Nevada authorities for months now. However, on Tuesday, a federal appeals court refused to delay a judge's November order that lifted a previous injunction preventing Nevada authorities from taking enforcement action. If Nevada succeeds in its lawsuit, it will become the second state to obtain a court order blocking Kalshi from offering sports event contracts. Previously, a judge in Massachusetts issued an injunction on February 5 at the request of the state attorney general. The injunction was supposed to take effect 30 days later, but a judge in the state appeals court put it on hold while Kalshi appeals. In the lawsuit on Tuesday, Nevada argued that under state law, offering sports event contracts or certain other event contracts constitutes gambling activities, and therefore Kalshi must be licensed. The lawsuit alleges that Kalshi has not complied with the state's gambling regulations, including prohibiting bets from individuals under 21 and requiring entities accepting sports event bets to take precautions to prevent insider betting and match-fixing. The state has already convinced a judge to issue an order prohibiting two other prediction market operators, Coinbase and Polymarket, from offering event contracts.