Nevada regulators filed a motion asking Kalshi to hand over documents. The prediction market operator needs to provide records of its talks with the Commodity Futures Trading Commission.
Kalshi received a cease-and-desist order back in March. Since then, the company’s drawn more legal attention from state officials.
The state’s also watching Crypto.com and other prediction trading platforms. Earlier this year, Judge Andrew Gordon blocked Crypto.com from offering sports prediction products. He pointed out differences between its contracts and Kalshi’s setup.
Legal analyst Daniel Wallach says Kalshi still hasn’t shared correspondence with the CFTC. That information could clear up whether the company’s following state and federal rules properly.
Why Nevada’s Pushing for These Records
The state’s trying to figure out how prediction markets fit within its gaming laws. It’s not entirely clear yet.
These platforms operate in a gray area between traditional gambling and commodities trading. Nevada wants to understand that space better before more companies enter the market.
The CFTC approved some of Kalshi’s operations at the federal level. But that doesn’t automatically mean they work under Nevada’s state rules. Regulators need to see the full picture of Kalshi’s federal compliance to make that call.
What the Motion Actually Requests
Court documents show Nevada’s motion targets four specific areas. First, how Kalshi complies with state rules. Second, the structure of its event contracts.
Third, whether Kalshi’s activities line up with the CFTC’s Core Principles. The filing states Kalshi’s earlier responses didn’t fully address these points.
That’s why regulators want more disclosure now. They specifically want communications between Kalshi and federal regulators that haven’t been shared yet.
The motion follows activity from May, when the CFTC asked the US Court of Appeals for permission to settle its legal dispute with Kalshi. Those proceedings add another layer to Nevada’s current investigation.
How This Shapes Prediction Market Rules
If the court grants Nevada’s motion, regulators will get better insight into Kalshi’s federal approval process. That could show whether federally approved operations actually fit Nevada’s gaming framework.
Other prediction platforms are watching this closely. The outcome might set guidelines for how these companies operate in Nevada going forward.
Right now, there’s tension between federal approval and state-level compliance. Nevada’s motion tries to resolve that gap by getting all relevant documents in one place.
The state’s taking a careful approach rather than rushing to judgment. But it’s also not backing down from getting the information it needs to make informed decisions about these platforms.
