The Nevada Gaming Control Board (NGCB) has issued a cease-and-desist order to Kalshi, a federally regulated prediction market platform, demanding the cessation of its sports and election event contracts within the state by March 14. The NGCB asserts that such event-based contracts are unlawful in Nevada unless approved by the Nevada Gaming Commission.
Kalshi operates under the oversight of the Commodity Futures Trading Commission (CFTC), allowing it to offer prediction markets across all 50 states. However, Nevada's stringent gaming regulations require that any sports betting operations undergo extensive investigation, adhere to strict regulations, and contribute applicable taxes and fees.
NGCB Chairman Kirk Hendrick emphasized that any attempts to bypass Nevada's regulatory framework would face severe penalties.
In response, a Kalshi spokesperson expressed disappointment but reiterated the company's respect for regulatory processes, highlighting its four-year tenure as a federally regulated exchange and recent status as a federally regulated clearinghouse. The spokesperson underscored Kalshi's commitment to providing safe, regulated, and transparent prediction markets in the U.S.
This development underscores the ongoing tension between federal and state authorities over the regulation of prediction markets and sports betting. The NGCB's decisive action reflects Nevada's determination to uphold its gaming laws and protect state-regulated sports betting frameworks.
