**Prediction Market Platform Kalshi Temporarily Banned in Nevada** The First Judicial District Court of Nevada has issued a 14-day restraining order, effective immediately, barring Kalshi, a prediction market platform, from offering event-based contracts relating to sports, election, and entertainment related events without first obtaining gaming licenses. This decision marks the latest escalation in the widening regulatory war over prediction markets. Kalshi, which has been operating in Nevada despite a cease-and-desist letter from regulators last year, will be forced to cease operation in the state for the next 14 days. The company had been able to continue operating while its lawyers sparred with authorities in court. Kalshi declined to comment on the decision. The case against Kalshi began over a year ago when Nevada regulators demanded that the company stop offering sports-related events contracts. The dispute has been ongoing, with the company arguing that its sports-related event contracts are not a form of betting, but rather financial instruments known as "swaps." The Commodity Futures Trading Commission (CFTC), the US agency that regulates commodity markets, agrees with Kalshi's assessment. The 14-day restraining order is a temporary measure, and the court will assess whether to extend the ban for the duration of the court case. Gaming lawyer Daniel Wallach predicts that the judge will convert the temporary restraining order to a case-long preliminary injunction. "The expectation here is that the judge will convert the 14 day TRO to a case-long preliminary injunction," Wallach says. Kalshi is not the only prediction market platform facing regulatory challenges. Dozens of similar cases are underway across the country, including in Ohio, Tennessee, and Massachusetts. The company has been accused of running an illegal gambling operation by the Arizona attorney general, who brought criminal charges against Kalshi on Tuesday. Just days earlier, Kalshi filed a lawsuit against Arizona state regulators, preemptively challenging any effort to make it follow state gambling laws. The issue at the heart of these cases is whether prediction markets should be forced to abide by state gambling laws. A number of prominent prediction market platforms offer sports-related contracts to people over 18 across the United States, even where state gambling laws prohibit sports betting. This has made a growing group of bipartisan lawmakers furious, as it creates a loophole that allows people under the legal age to place wagers on sports events.