The legal pressure on prediction markets has intensified with Nevada’s move to take action against Kalshi. The regulators intend to block the platform from offering sports-based event contracts in the state. The move follows the latest chapter in the ongoing battle between US states and prediction markets.
Nevada Intensifies Prediction Market Crackdown
In the latest development within the ongoing prediction market lawsuits, Nevada gaming regulators sued Kalshi to block its sports-based event contracts that allow state residents place bets on football, basketball, etc.
The regulators view Kalshi and other prediction market platforms’ operations in the state as unregulated. “Kalshi has continued to dramatically expand its business, rather than attempting to maintain any kind of status quo,” stated the authority.
In response, Kalshi reiterated its claim that the platform is offering “event contracts,” placing it under the regulation of the Commodity Futures Trading Commission (CFTC). Polymarket also takes a similar stance on regulation. Recently, as CoinGape reported, Poymarket sued Massachusetts for overstepping its regulatory authority.
Polymarket and Kalshi Gain Trump Support Amid Growing Scrutiny
Notably, the Nevada regulator’s latest lawsuit against Kalshi is part of the US states’ broader efforts to ban prediction markets. It also highlights the growing tensions surrounding the ongoing debate over the regulation of speculative markets.
Last month, platforms like Kalshi, Polymarket, and Crypto.com received a cease-and-desist letter from the Tennessee regulators. The watchdog demanded that they stop offering operations, warning that failure to comply could lead to the illegal gambling activities being referred to law enforcement for further investigation.
Amid this increasing scrutiny, the Trump administration has expressed support for the platforms. On Tuesday, as CoinGape reported, the CFTC filed an amicus curiae brief to defend its jurisdiction over Polymarket, Kalshi, and other similar platforms. Chairman Michael Selig stated,
“Today, the CFTC is taking an important step to ensure that these markets have a place here in America. To those who seek to challenge our authority in this space, let me be clear: we will see you in court.”
The CFTC claims that it currently oversees prediction markets, allowing platforms to operate in states where gambling is prohibited. Selig added, “The CFTC will no longer sit idly by while overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by seeking to establish statewide prohibitions on these exciting products.”
