Regulators in Nevada have filed a request known as a motion Force discoveryCalci Market expects to disclose basic information regarding its federally authorized businesses.
This news comes as the tightening of legal knots comes into focus more broadly in Nevada against prediction markets like Kalshi and Crypto.com (Crypto).
Calci is under scrutiny by regulators in Nevada
We reported that Nevada State Judge Andrew Gordon recently Request for injunction denied By the latter company to allow it to continue offering sports betting lines.
Crypto’s legal team did not see the validity of the decision, given that Kalshi was allowed to operate almost identical products. However, Judge Gordon’s decision stated that “cryptocurrency contracts expressly indicate outcome. I hold that outcome is distinct from occurrence.”
Now, legal specialist and gambling commentator Daniel Wallach has produced an update on Calci’s legal dealings in Nevada, after… He issued a cease-and-desist order in March.
He posted on social media saying that Calci refused to provide any information or correspondence with the CFTC regarding their business model.
NEW: State of Nevada files motion to compel discovery, seeks CFTC correspondence and internal communications discussing financial, business, or economic consequences associated with sporting event contracts; Kalshi says he refused to produce any internal communications. pic.twitter.com/N4lSTndLhf
– Danielle Wallach (@WALLACHLEGAL) October 9, 2025
Wallach continued Legal documents He focused on four specific subsections, surrounding Calche’s “ability or inability to comply with state law.”
Kalshi movement to force discovery
The keen-eyed gambling commentator goes into detail about Calci’s correspondence surrounding “the financial, commercial or economic consequences of the events on which their contracts are based and whether they meet the definition of ‘swap’.”
The second question was directed at Calci’s legal gray areas and whether the company had intentionally veered into the territory of illegal betting.
“Documents and communications relating to Calci’s ability or inability to comply with state law, and the supposed challenges associated with doing so — topics raised by Calci and addressed in a sworn declaration — are clearly relevant and should be submitted. To the extent certain responsive communications are privileged, they should be included in the record of privileges.” – KalshiEx LLC v. Hendrick et al
Wallach highlighted the next point requested by the New York-based company, “whether its event contracts may fall within a prohibited category, including because they relate to gaming or illegal activity.”
Finally, the third and fourth questions intersect and surround Calci’s compliance with the CFTC’s “Fundamental Principles,” asking about “a company’s rules for certifying that its event contracts serve legitimate risk mitigation and price discovery purposes rather than purely entertainment purposes.”
Calcchi, according to court documents filed by Wallach, has yet to satisfy Nevada parties seeking more clarity.
So the decision to request this information, which would provide key correspondence the company has had with the CFTC, could be a big factor in the future of prediction markets in the Silver State.
Meanwhile, Wallach provided background information indicating the possibility of possible sanctions on Calci’s existing business in Nevada.
Nevada seeks to impose sanctions on Calci:
"Kalshi’s use of unsupported boilerplate objections and continued refusal to produce requested documents with respect to issues that the court has already determined are the subject of appropriate discovery is unwarranted." pic.twitter.com/TQs0jH2qAV
– Danielle Wallach (@WALLACHLEGAL) October 10, 2025
“Kalshi’s use of unsupported boilerplate objections and continued refusal to produce requested documents on issues that the court has already determined are the subject of appropriate discovery is unwarranted.”
Featured image: Canva/Kalshi
this post Nevada submits motion on key CFTC and Kalshi documents appeared first on Read and write.
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