Nevada gaming regulators have launched legal action to prevent prediction market platform Kalshi from offering event-based contracts that allow residents to place financial bets on sports outcomes.
The Nevada Gaming Control Board argues that Kalshi’s sports-related contracts effectively function as wagering under state law. Because of this, officials claim the company must obtain proper licensing and comply with local gaming regulations, including age restrictions and safeguards against insider betting.
The lawsuit intensifies a broader national debate over who has authority to regulate prediction markets. On the same day the case was filed, the U.S. Commodity Futures Trading Commission backed companies like Kalshi, stating that it holds exclusive jurisdiction over such markets because they operate as financial derivatives rather than traditional gambling products.
A federal appeals court recently declined to halt Nevada’s enforcement efforts, clearing the way for the state to proceed. If successful, Nevada would join Massachusetts, where a judge has already issued an injunction against Kalshi’s sports event contracts, though that order is currently under appeal.
State regulators maintain that Kalshi failed to follow Nevada’s gaming rules, particularly those designed to prevent underage participation and match-fixing risks. Nevada is now seeking a court order to temporarily stop Kalshi’s operations in the state.
Kalshi, however, argues that its contracts fall under federal oversight as swap-based financial instruments and has moved to shift the case to federal court.
