Kalshi is facing mounting legal challenges after a Nevada judge ruled that the company is likely operating outside state law. The court rejected Kalshi’s argument that it falls solely under federal oversight, signaling that state-level enforcement may take priority in this case.

The dispute is part of a wider crackdown, with multiple states questioning the legality of prediction markets. As hearings continue, the outcome could shape how these platforms are regulated across the US, particularly in defining the line between financial products and gambling.