Netflix Faces Defamation Threat After Kalshi Claims The Prediction Games Trailer Falsely Depicts Nevada Court Order Violation

Netflix is facing legal pressure ahead of the release of its documentary The Prediction Games, after prediction market platform Kalshi threatened the streaming giant with a defamation lawsuit over its promotional trailer.

According to Deadline, Kalshi sent Netflix a cease-and-desist letter after the trailer showed traders celebrating profits from the FIFA World Cup while in Las Vegas. The company argues the footage creates the false impression that trades were placed in Nevada after a court order required Kalshi to block sports-related prediction markets in the state.

The letter reportedly describes the trailer as containing

“misleading statements portraying trades being made on Kalshi in violation of a court order.”

Netflix has denied the allegation. A spokesperson told CNN that the featured trade shown in the trailer was actually placed in May 2025, before the Nevada court restrictions took effect.

“The featured trader, with the trades on Spain, showed us a screenshot of his bet that was made in May 2025, prior to any Nevada court order,”

the spokesperson said.

Kalshi has also questioned the authenticity of the screenshot, claiming it contains terminology such as “bet slip,” which the company says does not appear on its platform.

The dispute comes as The Prediction Games is scheduled to premiere on Netflix, while Kalshi continues defending its business model in multiple legal challenges across the United States over whether prediction markets should be regulated under gaming laws.