Kalshi Granted Extension on Nevada Gaming Control Board's Cease-and-Desist Order
Kalshi, a regulated exchange and prediction market company, has received additional time from the Nevada Gaming Control Board (NGCB) to address a cease-and-desist order regarding its operations in the state.
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The original deadline of March 14, 2025, was extended after Kalshi's legal counsel contacted the NGCB requesting more time. The board did not object to this request, though the new deadline remains unspecified.
The cease-and-desist order, issued on March 4, centers around Kalshi's offering of sports event and election prediction contracts within Nevada. The NGCB maintains that these offerings violate Nevada state laws and regulations, as such contracts are considered unlawful unless approved and licensed by the Nevada Gaming Commission.
Key Points of Contention:
- Sports event contracts require proper licensing and regulation
- Election wagering is prohibited for all sports pools in Nevada
- Licensed operators must undergo extensive investigation and pay applicable taxes
Kalshi, which operates under Commodity Futures Trading Commission (CFTC) regulation, began offering sports event trading contracts in January 2025. Their business model allows customers to purchase contracts ranging from $0.01 to $0.99, with successful predictions paying out $1 per contract.
NGCB Chairman Kirk Hendrick emphasized that any attempts to circumvent Nevada's gaming regulations would face both criminal and civil penalties.