Kalshi, the online prediction market platform, faces growing legal pressures after a judge in Nevada issued a temporary ban on its operations. The move comes as Arizona's attorney general filed a 20-count criminal complaint against Kalshi for running an illegal gambling business.

Nevada regulators argue that Kalshi lacks necessary gaming licenses and violates state laws by allowing users under 21 to participate. In February, the state sued Kalshi, requesting a temporary restraining order which was granted on Friday. The court will hold a hearing early next month.

Kalshi claims its registration with the Commodity Futures Trading Commission (CFTC) exempts it from state laws, but Judge Jason D. Woodbury noted that this issue remains unresolved in courts. Meanwhile, federal officials have spoken out against the states' actions, with CFTC chairman Mike Selig calling the Arizona charges inappropriate for a criminal prosecution.

This case is part of an ongoing wave of legal challenges across states aimed at curbing prediction markets like Kalshi and Polymarket, which are seen as circumventing state gambling laws. However, federal officials have taken steps to protect these platforms, highlighting potential regulatory battles between states and the CFTC over the future of online prediction markets.