The New York company that offers “event-based contracts” that look like sports bets has sued Nevada gaming regulators for threatening to curtail its investment business.
KalshiEX LLC is seeking a permanent injunction against members of the Nevada Gaming Control Board and Nevada Gaming Commission and Attorney General Aaron Ford with its lawsuit in U.S. District Court in Nevada.
A representative of the Nevada Attorney General’s Office had no comment on the lawsuit.
“Nevada’s attempt to regulate Kalshi intrudes upon the federal regulatory framework that Congress established for regulating futures derivatives on designated exchanges,” the company said in its lawsuit filed Friday.
Kalshi, which says it is the first exchange regulated by the federal Commodity Futures Trading Commission, is dedicated to trading on the outcome of future events, usually with yes-or-no propositions.
