Nevada Issues Cease and Desist to Kalshi Over Sports and Election Betting

The state has given the prediction market platform 10 days to stop offering its sports and election contracts to Nevadans

Nevada Issues Cease and Desist to Kalshi Over Sports and Election Betting
Listen to this article now

On Tuesday afternoon, the Nevada Gaming Control Board issued a Cease and Desist letter to Kalshi. The letter demands that Kalshi stop offering its sports and election event contracts by 5 pm on March 14. It’s the first cease and desist letter from a state gaming board directed at Kalshi. 

The letter comes about a month after Kalshi filed to offer contracts on individual sports events. Kalshi launched its Super Bowl contracts about a week and a half before the Super Bowl and its election contracts about a month before the 2024 presidential election.

“Regarding event-based contracts on the outcome of elections, the letter informs Kalshi that even licensed sports pools in Nevada are prohibited from accepting wagers on such activity,” the Gaming Control Board wrote. “The letter therefore advises Kalshi that its actions are in direct violation of Nevada’s public policy.”

States try their hand at restrictions

Kalshi’s event contracts are CFTC-regulated commodities, which are financial instruments whose transactions are often carved out in state gambling restriction laws. Federal law also preempts state law, so Nevada cannot unilaterally ban Kalshi

Kalshi’s election contracts came from the company’s lawsuit against its regulator, the Commodity Futures Trading Commission (CFTC). The CFTC believed Kalshi’s election contracts were contrary to the public interest. Kalshi argued that its election contracts complied with CFTC regulation and that its regulator overreached its authority. An opinion from the Appellate Court is pending.

Kalshi certified its sports contracts without challenge from the CFTC. So far, the CFTC and federal courts have not prevented Kalshi from offering its sports contracts.

As of Tuesday night, Kalshi has not responded to the Nevada Gaming Control Board.   

Join the

Prediction News Community

Featuring prediction market
analysis, data insights
plus
comprehensive industry reporting

News Categories

Must Read

Prediction Platforms

Who will win the 2024
US Presidential Election?

Loading..

Loading..

Loading..

Loading..

Loading..