Nevada Gaming Control Board warns licensees against prediction market involvement.

The Nevada Gaming Control Board (NGCB), with the subject line “Sports Event Contracts Are Wagers,” became the latest state regulator to advise its licensees against participating in prediction markets late Wednesday. The NGCB plainly notes in the letter that sports event contracts, such as those offered by Kalshi and other prediction markets, are considered wagering “whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission (CFTC) or elsewhere.”

According to NGCB Chair Mike Dreitzer, selling contracts for sporting events or other “other” events or collaborating with another company that does so will raise concerns about the entity’s appropriateness. Furthermore, the NGCB stated that a licensee may face disciplinary action under the Gaming Control Act if they participate in another state “without complying with the other state’s restrictions, prohibitions, or licensing regime; partner with another entity that engages in such activities; or acts in violation of a compacted tribal right.”

According to Dreitzer, “other event contracts” include “political elections, the Oscars, Esports, and the World Series of Poker.”

ALSO READ: Nevada judge explains change of heart on sports contract legality.

The first two states to send such a letter to licensees were Ohio in August and Arizona last month; Nevada is the third. Pennsylvania’s regulator has not written to licensees, but on October 3, it wrote to the state’s senators and representatives, requesting support from Congress to protect states’ authority to control gaming.

The letter’s issuance was originally reported by Howard Stutz of the Nevada Independent.

NGCB: Contracts for sporting events = gambling
Through court cases and cease-and-desist letters, state and tribal authorities throughout the United States have also been battling to maintain control over gaming regulation. Kalshi has been sued by the attorney general of Massachusetts, the Ho-Chunk Tribe of Wisconsin, and three California tribes. The corporation has also sued regulators in Maryland, Nevada, and New Jersey for cease-and-desist letters, and most recently, Ohio.

A federal district court judge granted an injunction motion in the Kalshi-Nevada dispute, allowing Kalshi to continue operations while the case is pending. However, in a related case last week, the same judge rejected Crypto.com’s request for an injunction, and the company is now required to stop operating in Nevada. Crypto.com is likely to file an appeal of the ruling.

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