Nevada Orders Kalshi Out by March 14
Nevada is cracking down on Kalshi, a prediction market platform, demanding it halt all operations in the state by March 14, 2025. The Nevada Gaming Control Board (NGCB) issued a cease-and-desist order, asserting that Kalshi’s sports and election event contracts violate state law unless approved as licensed gaming, a step the platform hasn’t taken.
A Line in the Sand
The NGCB’s order, signed by Chairman Kirk Hendrick, gives Kalshi until 5 p.m. on March 14 to stop offering its contracts to Nevadans.
The board argues that these event-based contracts—tied to sports outcomes and election results fall outside Nevada’s legal framework.
“Even licensed sports pools in Nevada cannot accept wagers on election outcomes,” Hendrick wrote in the demand letter. Kalshi, which operates under federal oversight from the Commodity Futures Trading Commission (CFTC), has no Nevada gaming license, putting it at odds with the state’s rigorous regulations.
The NGCB warned that past violations could trigger fines, and any future breaches after the deadline will be deemed willful violations of state law. The licensing process here is no cakewalk. It involves deep background checks, compliance with tight rules, and payment of taxes and fees.
Prediction Markets Under Fire
Kalshi’s clash with Nevada comes amid a heated debate over prediction markets nationwide. Tribal leaders, via groups like the Indian Gaming Association, are pushing back hard, claiming these platforms erode their exclusive gaming rights. They’ve urged the CFTC to ban sports event contracts, fearing revenue losses.
Meanwhile, tech and finance heavyweights like Robinhood’s Vlad Tenev see prediction markets as game-changers. “They’re revolutionary tools for forecasting real-world events,” Tenev has said, echoed by Coinbase and Crypto.com, which view them as legitimate financial instruments.
Congresswoman Dina Titus has raised alarms too, warning that prediction markets could act as “back doors” to sports betting in states where it’s illegal. She insists gambling rules should stay state-driven, not federal.
The CFTC, which oversees Kalshi and Crypto.com, allows these platforms to offer event contracts across all 50 states but is now rethinking its stance. It’s called for a roundtable discussion and asked both companies to pause trading during a policy review.
A potential shift looms, if ex-Kalshi board member Brian Quintenz becomes CFTC chair, prediction markets might gain a powerful ally in Washington.
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