Lawyers representing the state of Nevada, in a motion filed with the US District Court for the District of Nevada, stated that they require evidence regarding how Kalshi develops and operates its contracts
Nevada’s Attorney General has asked a federal judge to make prediction market operator Kalshi, turn over a broad set of internal messages and files. This is part of the state’s attempt to figure out if Kalshi’s sports event contracts follow state law.
Nevada Pushes for Discovery, Disputes Kalshi’s Bid to Skip Fact-Finding
In a motion submitted to the US District Court for the District of Nevada, lawyers representing the state expressed their need for evidence about how Kalshi designs and runs its contracts. They also want information on how these products have been discussed with the Commodity Futures Trading Commission (CFTC) federal officials and CFTC chair nominee Brian Quintenz. The state lawyers also asked for specifics on Kalshi’s institutional market makers and the companies involved in its Nevada operations, including lobbyists and marketing agencies.
The push to uncover facts comes after Kalshi argued that the disagreement centers on how to interpret the law and whether federal law trumps Nevada gaming laws, making more fact-checking pointless. Nevada hit back, saying there is no agreed-upon record and that several of Kalshi’s claims, like the supposed threat to its survival if it cannot operate in Nevada, cannot be checked without looking at internal numbers.
Lawyers for the state accused Kalshi of trying to limit fact-gathering while submitting its own proof to back up its request for a quick decision, which could end the case before it goes to trial. They also challenged Kalshi’s claim that discovery would be too much work, pointing out the company’s $2 billion value after a June funding round.
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