WagerMintsKalshi and prediction markets in Nevada: taxes and legal status
Nevada has no personal income tax, so the state doesn't tax your gambling winnings or short-term prediction market gains. You still owe federal tax.
As of October 27, 2026, Nevada has court orders in force that stop Kalshi, Coinbase and Polymarket US from offering sports, election and entertainment event contracts to people in the state. Where it stands
Checked October 27, 2026 against Nevada’s tax department, court dockets and regulator records.
Nevada at a glance
- Income tax
- None
- Gambling losses
- No state income tax
- 2026 federal 90% rule
- No state income tax
- Prediction markets
- Court orders in force
Income tax
How does Nevada tax gambling and prediction market winnings?
Nevada has no personal income tax on wages, gambling winnings or short-term trading gains.
Nevada doesn't tax trading gains because it has no personal income tax.
Legal status
Is prediction market trading legal in Nevada?
As of October 27, 2026, Nevada has court orders in force that stop Kalshi, Coinbase and Polymarket US from offering sports, election and entertainment event contracts to people in the state. The Ninth Circuit appeals court ruled on August 28, 2026 that Nevada can enforce its gambling laws against sports event contracts from Kalshi, Crypto.com and Robinhood. Nevada regulators call these contracts unlicensed wagering, so a trader in Nevada should expect sports contracts to be blocked or geofenced.
Where each platform stands
Kalshi
Some contracts stoppedA Nevada state judge entered a preliminary injunction on May 18, 2026 barring sports, election and entertainment contracts in Nevada, and Kalshi agreed on July 23 to a stronger geofence with a $120,000 per day penalty.
Polymarket US
Some contracts stoppedA Nevada state judge granted the gaming regulator a preliminary injunction against Polymarket US (QCX LLC) on May 29, 2026.
Coinbase
Some contracts stoppedThe Nevada Gaming Control Board says a preliminary injunction already in place bars Coinbase from offering these contracts in Nevada.
Crypto.com
Being fought in courtCrypto.com's federal suit against Nevada is still open, and the Ninth Circuit ruled against it on sports contracts on August 28, 2026.
Robinhood
Being fought in courtRobinhood's federal suit against Nevada is still open, and the Ninth Circuit ruled against it on sports contracts on August 28, 2026.
What happens next: Kalshi's federal case returns to the Nevada district judge on the election-contract question, and the Nevada state cases against Kalshi and Polymarket US continue; no hearing dates were confirmed.
Timeline · 7 steps
Every step in Nevada, in order
Jan 16, 2026
Regulator · Nevada Gaming Control Board · Nevada ex rel. Gaming Control Board v. Blockratize, Inc. (Polymarket) (First Judicial District Court, Carson City)
The gaming regulator sued Polymarket in state court, asking for an order to stop unlicensed wagering in Nevada.
NGCB press release, Jan. 16, 2026Feb 17, 2026
Regulator · Nevada Gaming Control Board · Nevada ex rel. Gaming Control Board v. KalshiEX LLC (First Judicial District Court, Carson City)
The gaming regulator sued Kalshi in state court, saying its sports, election and entertainment contracts are unlicensed wagering.
NGCB press release, Feb. 17, 2026Mar 20, 2026
Court · Nevada First Judicial District Court · Nevada ex rel. Gaming Control Board v. KalshiEX LLC (First Judicial District Court, Carson City)
A state judge entered a temporary restraining order barring Kalshi from offering sports, election and entertainment contracts in Nevada.
NGCB press release, Mar. 20, 2026May 18, 2026
Court · Nevada First Judicial District Court · Nevada ex rel. Gaming Control Board v. KalshiEX LLC (First Judicial District Court, Carson City)
A state judge entered a preliminary injunction requiring Kalshi to geofence so sports, election and entertainment contracts are not offered to anyone in Nevada. This stays in place while the case continues.
NGCB press release, June 12, 2026 (describes the May 18 order)May 29, 2026
Court · Nevada First Judicial District Court · Nevada ex rel. Gaming Control Board v. QCX LLC (Polymarket US) (First Judicial District Court, Carson City)
A state judge granted the regulator's motion for a preliminary injunction against Polymarket US. A written order was to follow.
NGCB press release, June 1, 2026Jul 23, 2026
Regulator · Nevada Gaming Control Board and Kalshi · Nevada ex rel. Gaming Control Board v. KalshiEX LLC (First Judicial District Court, Carson City)
After the regulator asked for a contempt finding, Kalshi agreed in a filed agreement to add a multi-source geofence by August 12, 2026 or pay $120,000 per day. Kalshi admitted that regulators' investigators were able to enter these contracts from inside Nevada.
NGCB press release, July 24, 2026Aug 28, 2026
Court · U.S. Court of Appeals for the Ninth Circuit · KalshiEX, LLC v. Assad (No. 25-7516)
A three-judge panel affirmed the order that dissolved Kalshi's federal injunction as to sports event contracts, finding federal law is unlikely to override Nevada's gaming laws for them. It sent the question about election contracts back to the district judge. This was a ruling on a preliminary injunction, not a final judgment.
Ninth Circuit opinion, Aug. 28, 2026
Federal courts
What the federal courts and the CFTC have said
States say prediction market sports contracts are bets that their gambling laws cover, while Kalshi and the CFTC say they are swaps, a kind of derivative that only the federal Commodity Exchange Act and the CFTC regulate. The Third Circuit appeals court sided with Kalshi against New Jersey in April 2026, while the Ninth Circuit (Nevada, August 2026) and the Sixth Circuit (Ohio and Tennessee, September 2026) ruled for the states, all at the preliminary stage. The Fourth Circuit (Maryland) heard argument in May 2026 and had not ruled as of October 27. New Jersey's petition to the Supreme Court, Flaherty v. KalshiEX (No. 26-299), is waiting on Kalshi's response due November 9, 2026, and the Court has not yet said whether it will hear the case. On October 9, 2026 the CFTC proposed a rule defining event contracts as swaps.
Apr 6, 2026
Court · U.S. Court of Appeals for the Third Circuit · KalshiEX LLC v. Flaherty (No. 25-1922)
By a 2-1 vote, the appeals court for New Jersey, Pennsylvania and Delaware upheld an order that stops New Jersey from enforcing its gambling laws against Kalshi's sports contracts for now. It found Kalshi likely to win its argument that federal law overrides the state. This is a preliminary ruling, not a final judgment.
Third Circuit opinion, Apr. 6, 2026Aug 28, 2026
Court · U.S. Court of Appeals for the Ninth Circuit · KalshiEX LLC v. Assad (No. 25-7516)
A unanimous three-judge panel upheld the order that lifted Kalshi's protection against Nevada, so Nevada may enforce its gambling laws against Kalshi's sports contracts. The court held that sports contracts are not swaps under federal law. It sent Kalshi's election contracts back to the district court. This is a preliminary ruling.
Ninth Circuit opinion, Aug. 28, 2026Sep 2, 2026
Court · Supreme Court of the United States · Flaherty v. KalshiEX, LLC (No. 26-299)
New Jersey asked the Supreme Court to review the Third Circuit ruling. Kalshi's response is due November 9, 2026 after an extension. Many states, tribes, the NFL and others have filed friend-of-the-court briefs. The Court has not decided whether to take the case.
Supreme Court docket No. 26-299Sep 16, 2026
Court · U.S. Court of Appeals for the Ninth Circuit · Blue Lake Rancheria v. Kalshi, Inc. (No. 25-7504)
In a case brought by two California tribes, the court held the tribes are likely to win their claim that Kalshi's sports contracts offered on tribal lands break the federal Indian Gaming Regulatory Act, and sent the case back to the lower court. A Lanham Act (false advertising) claim was rejected.
Ninth Circuit opinion, Sept. 16, 2026Sep 25, 2026
Court · U.S. Court of Appeals for the Sixth Circuit · KalshiEX LLC v. Schuler (Ohio) and KalshiEX LLC v. Orgel (Tennessee) (Nos. 26-3196 and 26-5235)
A unanimous panel upheld a federal judge's refusal to block Ohio's gambling laws and threw out the order that had protected Kalshi in Tennessee. It held Kalshi's sports contracts are not swaps and, even if they were, federal law does not override the states' gambling laws. The cases go back to the lower courts.
Sixth Circuit opinion, Sept. 25, 2026Oct 9, 2026
Regulator · Commodity Futures Trading Commission
The CFTC proposed a rule that would expressly define event contracts, including those on sports, politics, culture and weather, as swaps, which would place them under federal rather than state oversight. The public may comment for 30 days after Federal Register publication (91 FR 66022). It is a proposal, not a final rule. The same day the CFTC issued an interim rule excluding casino-style gambling products, such as sportsbook wagers and casino games, from the swap definition (91 FR 65969).
CFTC press release 9310-26, Oct. 9, 2026Oct 26, 2026
Court · U.S. Court of Appeals for the Fourth Circuit · KalshiEX LLC v. Martin (Maryland) (No. 25-1892)
No ruling yet. The appeal was argued May 7, 2026 and the parties were still filing supplemental authorities on Oct. 26, 2026.
CourtListener docket, Fourth Circuit No. 25-1892
Your trades
Kalshi and Polymarket profits in Nevada
Nevadadoesn’t tax them, but the federal rules do, and the method you choose can change your federal bill by thousands. The four methods, compared.
The court cases are about whether Nevada can license or stop the platforms. None of them decides how your trades are taxed. Trades you already made, including positions an order made you close, still count in your tax year.
Questions
Questions about Nevada
- Does Nevada tax gambling winnings?
- Nevada has no personal income tax, so the state doesn't tax your gambling winnings or short-term prediction market gains. You still owe federal tax.
- Can I deduct gambling losses in Nevada?
- Nevada has no personal income tax, so there is nothing to deduct them from on a state return. Federal rules still apply.
- Is Kalshi legal in Nevada?
- As of October 27, 2026, Nevada has court orders in force that stop Kalshi, Coinbase and Polymarket US from offering sports, election and entertainment event contracts to people in the state. The Ninth Circuit appeals court ruled on August 28, 2026 that Nevada can enforce its gambling laws against sports event contracts from Kalshi, Crypto.com and Robinhood. Nevada regulators call these contracts unlicensed wagering, so a trader in Nevada should expect sports contracts to be blocked or geofenced.
- Does the court fight change how my trades are taxed?
- No. These cases decide whether a state can license or stop the platforms. None of them decides how your trades are taxed, and trades you already made still count in your tax year.
States with the same rule on losses: New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. All states.
Tax facts checked against Nevada’s own tax pages on October 26, 2026; legal status on October 27, 2026. Rules and cases change, so confirm with current instructions before you file.
See your own year four ways
WagerMints prices your Kalshi or Polymarket year under all four federal methods, side by side, so you can see what Nevada is taxing before you file. Free, no account.
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