Nevada’s gaming regulator has told Kalshi that it cannot offer its prediction markets and event contracts in the state.
The Nevada Gaming Control Board (NGCB) announced on Tuesday that it has sent a cease-and-desist letter to Kalshi, ordering the company to stop accepting business from Nevada residents by March 14.
The letter asserts that the kind of event contracts that Kalshi offers on elections and sports are “unlawful in Nevada unless and until approved as licensed gaming by the Nevada Gaming Commission.”
The board alleges multiple violations of Nevada revised statutes and Nevada Gaming Commission regulations. It also notes that even licensed sports betting operators are forbidden from offering election markets.
The @NevadaGCB issued the following news release today. pic.twitter.com/uzQEwE2yy1
— Nevada Gaming Control Board (@NevadaGCB) March 5, 2025
Kalshi’s decision to offer sports contracts has drawn scrutiny, but Nevada is the first state to publicly take enforcement action against the firm.
The NGCB stressed that it is willing to pursue criminal and civil penalties for Kalshi if it continues to “circumvent Nevada’s right to regulate gaming activity.”
Kalshi has ‘utmost respect’ for regulators
Kalshi currently offers its event contracts in all 50 states.
SBC Americas reached out to the company seeking a response to the NGCB’s announcement.
“While we’re disappointed with the Commission’s assessment, Kalshi has always held the utmost respect for regulators and the regulatory process,” said a spokesperson. “We’ve been a federally regulated exchange for over four years and a federally regulated clearinghouse for about six months.
“We are proud to have paved the way for prediction markets to thrive in the U.S. We look forward to a swift resolution to this matter and to ensuring that Americans continue to have access to safe, regulated, and transparent prediction markets.”
Later on Wednesday, Kalshi CEO Tarek Mansour posted a statement to social media platform X, Mansour addressed “the fight” to have its offerings validated.
“We knew that regulation and trust had to be the foundation to build something enduring,” he wrote. “That’s why we spent three grueling years getting regulated by the CFTC before we launched a single product … We prevailed, got regulated, and made prediction markets legal in the U.S. …
“After the election, we were convinced that the value of prediction markets was now obvious to everyone, and that the regulatory battle for legal prediction markets was over… We were right, except for the everyone part. While we are disappointed to see the letter from the Nevada Gaming Commission, Kalshi will stay committed to our approach and keep paving the way for regulated prediction markets to thrive in the U.S.”
Debate over event contracts continues to headline industry
The standing of event contracts and how they may blur the lines around sports betting was a topic that reached fever pitch late last year, around the time of the U.S. election, and through to the Super Bowl in Febuary.
The Commodities Futures Trading Commission (CFTC) continues to assess their legality.
In letter to acting CFTC Chair Caroline Pham last week, Nevada Rep. Dina Titus called the likes of Kalshi, Crypto.com and Robinhood offering sports event contracts “a backdoor way to allow sports betting in 50 states, ignoring consumer protections, responsible gaming, integrity monitoring and state tax revenue rules and regulations.”
