Nevada escalates fight over prediction markets, sues Kalshi Nevada’s gaming regulators have launched a new legal attack on federally regulated prediction markets, filing a civil enforcement action against KalshiEX LLC and accusing the exchange of offering unlicensed wagering to state residents. The Nevada Gaming Control Board (NGCB) filed its complaint in Carson City District Court, arguing Kalshi’s sports-linked “event contracts” are effectively gambling under Nevada law. The state is seeking declaratory relief and an injunction to stop Kalshi from operating in Nevada without approval from the Nevada Gaming Commission, saying the platform’s availability to Nevada residents violates multiple sections of the state gaming code. “The Board continues to vigorously fulfill its obligation to safeguard Nevada residents and gaming patrons,” NGCB Chairman Mike Dreitzer said. Kalshi quickly moved to shift the dispute to federal court and reiterated its long-standing defense: its event contracts are financial derivatives regulated by the Commodity Futures Trading Commission (CFTC), not traditional bets. Kalshi operates as a CFTC-designated exchange and contends federal law preempts state gaming regulation. Nevada disagrees. Regulators say contracts tied to sports outcomes function like sportsbook wagers and therefore fall squarely within state oversight. The NGCB warns that allowing unlicensed operators to offer such products would undercut Nevada’s tightly controlled gaming framework. This suit follows a recent Nevada complaint against crypto exchange Coinbase over prediction markets the exchange launched in partnership with Kalshi. It also sits inside a broader national clash: states including Maryland, New Jersey, Ohio and Tennessee have issued cease-and-desist orders or filed suits against prediction markets, arguing these products amount to unlicensed gambling. The CFTC, for its part, has defended federal authority over event contracts; Kalshi has won temporary court relief in prior clashes, though those victories have been narrow and closely scrutinized. At stake is who regulates a rapidly growing corner of the market: federal derivatives overseers or state gaming boards. The court’s decision could reshape how Americans trade on elections, sports and economic indicators—either creating a single federal regime for prediction markets or leaving firms to navigate a patchwork of state gambling laws. For crypto platforms looking to add or expand prediction-style products, the outcome will be a critical precedent. Read more AI-generated news on: undefined/news