Kalshi Kicked Out of Nevada by NGCB

Posted on: March 4, 2025, 10:23h. 

Last updated on: March 5, 2025, 10:41h.

Todd Shriber @etfgodfather Read More

Expertise: Financial, Gaming Business, Mergers and Acquisitions.

• Prediction market has until March 14 to exit Nevada
• Latest sign of state’s hostility to web-based wagering

Prediction market operator Kalshi has been ordered by the Nevada Gaming Control Board (NGCB) to halt its activities in the state and exit by 5 p.m. on March 14.

In a demand letter released on Tuesday, the NGCB confirmed it issued a cease and desist order to Kalshi telling the company that event-based contracts on elections and sports are “unlawful in Nevada unless and until approved as licensed gaming by the Nevada Gaming Commission.”

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 letter therefore advises Kalshi that its actions are in direct violation of Nevada’s public policy.”

While Kalshi, one of the leaders in the space, offering much more than election and sports contracts, the former is a staple for the company and soared in popularity during the 2024 election cycle. One of the primary reasons for the surge in volume of political contracts on Kalshi and comparable platforms is that regulated sportsbooks are federally barred from taking election-related wagers in the US.

NGCB Extends Nevada’s Aversion to Internet Betting

The timing of the NGCB demand letter is likely to invite scrutiny, as it was penned about a week after Rep. Dina Titus (D-Nevada) said more discussion is needed on prediction markets’ offerings.

“Prediction contracts on sports create a backdoor way to legalize sports betting in states that have not authorized it,” Titus wrote Acting Commodities Futures Trading Commission (CFTC) Chair Caroline Pham

Still, the state that’s the casino capital of the US is notoriously against other forms of wagering. Nevada will almost certainly never approve internet casinos and the state doesn’t have a lottery. The state also prohibits daily fantasy sports, and while it’s home to more than its share of poker rooms and tournaments, Nevada allows just one internet poker operator to do business in the state — the World Series of Poker (WSOP).

So arcane are Nevada’s internet wagering policies that DraftKings and FanDuel – the two largest sportsbook operators – don’t do business in the state because of a mandate that requires bettors to physically enter casinos to activate mobile sports wagering accounts.

Kalshi Could Have Legal Grounds to Fight NGCB

At this writing, Kalshi hadn’t posted a response to the NGCB demand letter, but the company could have some standing to fight the decision for a simple reason: the contracts it features aren’t considered bets. They’re classified as derivatives, or financial instruments based on an underlying asset or event.

A potential compromise would be for Nevada regulators to allow Kalshi to operate in the state while stripping out its election and sports contracts. The exchange company offers a slew of derivatives on events, including awards shows, economic data releases, and weather, among others. Neither side has signaled that’s a possibility.