Nevada escalates its fight against prediction markets, suing Kalshi and raising new questions for crypto platforms The Nevada Gaming Control Board has filed a civil enforcement action in Carson City District Court against KalshiEX LLC, accusing the CFTC-regulated prediction market of offering unlicensed wagering to Nevada residents. Regulators say Kalshi’s sports-linked “event contracts” are effectively gambling under Nevada law and are asking the court for declaratory relief and an injunction to bar Kalshi from operating in the state without a Nevada gaming license. “The Board continues to vigorously fulfill its obligation to safeguard Nevada residents and gaming patrons,” NGCB Chairman Mike Dreitzer said in announcing the filing. Kalshi quickly sought to move the case to federal court, repeating its long-held view that event contracts are financial derivatives governed exclusively by the Commodity Futures Trading Commission (CFTC). The company — a CFTC-designated exchange — argues federal law preempts state gaming rules and that its products are not traditional bets but regulated derivatives. Nevada regulators disagree. The complaint contends that contracts tied to sports outcomes mirror sportsbook wagers and therefore fall under state gaming law. The Board warns that allowing unlicensed operators would undercut Nevada’s tightly controlled gaming framework. The suit against Kalshi arrives alongside related legal action: Nevada recently sued crypto exchange Coinbase over prediction markets that Coinbase launched through a partnership with Kalshi. That connection has heightened attention in crypto circles because the outcome could affect how exchanges and crypto platforms handle prediction-style products going forward. This dispute is part of a wider, nation‑wide legal battle over jurisdiction for prediction markets. Several states — including Maryland, New Jersey, Ohio and Tennessee — have issued cease-and-desist orders or filed suits to block unlicensed sports event contracts. The CFTC has defended its authority over event contracts, and Kalshi has won temporary court relief in earlier skirmishes, though those wins have been narrow and closely watched. What’s at stake is who regulates a fast‑growing market for trading on elections, sports and economic events: a single federal derivatives regime under the CFTC, or a patchwork of state gaming rules. The court’s decision could reshape how Americans — and crypto platforms that offer similar products — are allowed to trade prediction-style contracts nationwide. Read more AI-generated news on: undefined/news