Nevada Gaming Control Board issues cease-and-desist to Kalshi
The Nevada Gaming Control Board has issued a cease-and-desist letter to New York-based financial exchange and prediction market Kalshi.
The regulator noted that Kalshi’s event-based contracts on sporting events and election outcomes were unlawful in Nevada, unless approved by the Nevada Gaming Control Board.
The cease-and-desist letter informs Kalshi that even licensed sports pools are not exempt from Nevada law and are, therefore, prohibited from accepting wagers on election outcomes.
Nevada Gaming Control Board Chairman, Kirk Hendrick, said, “Every sports pool in Nevada must undergo an extensive investigation prior to licensing, must adhere to strict regulation once licensed, and must pay all applicable taxes and fees. Any unlawful attempts to circumvent Nevada’s right to regulate gaming activity within its borders will be met with the full force of criminal and civil penalties.”
Kalshi has until 14 March 2025 to cease all unlawful operations in the state. If not, any further activity will be deemed “willful violations.” The letter also said that “any past unlawful action remains subject to criminal and civil penalities.”
This is not the only recent controversy regarding Kalshi. Its partnership with trading platform Robinhood was cut short during Super Bowl LIX weekend after the Commodity Futures Trading Commission stepped in to stop Robinhood’s launch of sports contracts.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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