A Nevada court moved to keep Calci out of the state’s event contract market while the legal battle continues.
summary
- A Nevada state judge upheld the regulators and said Calcci’s event contracts were no different from sports betting.
- The ruling extends Nevada’s ban on kale while the court reviews long-term restrictions until April 17.
- The case deepens the clash between state gambling laws and demands for federal oversight of prediction markets.
The ruling came after the Nevada Gaming Control Board asked the court to block the company from offering contracts related to sports, elections and entertainment results.
The case adds to a broader debate about whether prediction market contracts fall under federal derivatives law or state gambling rules. Calci has said its products are financial contracts, while Nevada regulators have argued that the offers are consistent with gambling activity under state law.
Judge Jason Woodbury said he would grant a preliminary injunction against Calci at a hearing in Carson City. According to According to Reuters, the order prohibits the company from allowing Nevada residents to trade event contracts without a gaming license.
The move extends the temporary restraining order issued on March 20. This order will remain in place until April 17 while the court completes the next steps in the case.
Calci had argued that its contracts are “swaps” and fall under the supervision of the CFTC. The company confirmed that federal law gives the Commodity Futures Trading Commission (CFTC) authority over these products.
The judge did not accept this position. Reuters reported that Woodbury said buying a contract tied to the outcome of a game is the same as placing a bet through a sportsbook. “No matter how you slice it, this behavior is indistinguishable,” he said.
State regulators score an early win in court
This ruling marks the first time a country has obtained a court-imposed ban that is currently active against Calci. This gives Nevada an early legal win, as more states question prediction markets tied to sports and similar events.
The state of Utah has also moved against the sector. Lawmakers there passed a bill last month It classifies bets similar to the proposition on in-game events as gambling and seeks to ban such products from platforms including Kalshi and Polymarket.
The dispute also comes as the Commodity Futures Trading Commission (CFTC) continues to do so Defend its role in prediction markets. CFTC Chairman Michael Selig said last month that the agency was prepared to fight in court to protect its jurisdiction from states and other regulators.
Selig also described prediction markets as “truth machines” during the industry conference. Markets where users risk their money on the results could provide a clearer signal about future events than opinion polls, creating a sharper collision between claims for federal oversight and state gaming laws, he said.
