Nevada gaming regulators have filed a lawsuit to prevent prediction market operator Kalshi from offering event contracts, which would allow residents to bet on sports like football and basketball. This action is part of a broader conflict over state regulators' authority to police companies like Kalshi, which facilitate financial bets through prediction markets.
Nevada's suit argues that offering sports event contracts constitutes wagering under state law, requiring Kalshi to obtain a license and comply with regulations. These include age restrictions and safeguards against insider betting and match-fixing. The state previously secured similar court orders against other prediction market operators, Coinbase and Polymarket.
Kalshi, however, contends that the Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over its event contracts, classifying them as a type of derivative known as swaps. The company has sought to move the Nevada case to federal court, citing this jurisdictional dispute. The outcome could set a precedent for how prediction markets are regulated nationwide.