The push against prediction platforms continues, with the Nevada Gaming Control Board issuing a cease-and-desist to Kalshi for offering “unlawful gaming” to people in the state:
The regulator’s letter released on Tuesday explained that offering event-based contracts for sports and election outcomes will remain illegal unless the Nevada Gaming Commission licenses the activity. It noted that even Nevada’s legal fixed-odds sportsbooks can’t offer betting on politics.
warning to stop its operations in Nevada by 5pm on March 14
The NGCB warned Kalshi that it breached several state laws and could face criminal charges if it fails to heed its warning to stop its operations in Nevada by 5pm on March 14. NGCB Chairman Kirk Hendrick finished the letter by saying that any attempt to circumvent state laws will “be met with the full force of criminal and civil penalties.”
Prediction market platforms like Kalshi, Polymarket, and PredictIt have been in the spotlight since becoming extremely popular in the run-up to the 2024 US Presidential election. The Commodity Futures Trading Commission (CFTC) begrudgingly approved the framework to allow Kalshi operate nationwide, although the combination of financial and gambling speculation is causing consternation among regulators.