Nevada gaming regulators filed a lawsuit on Tuesday seeking to block prediction market company Kalshi from offering sports event contracts to state residents, arguing the products amount to unlicensed sports betting under state law.
The Nevada Gaming Control Board contends Kalshi’s contracts, which allow users to wager on outcomes of games such as football and basketball, constitute gambling and require state licensing. Regulators also allege the company has not complied with rules barring wagers by those under 21 or requiring safeguards against insider betting and match-fixing.
Kalshi argues its contracts are financial derivatives regulated exclusively by the Commodity Futures Trading Commission. The CFTC backed that position Tuesday in a court filing in related litigation.
Nevada is seeking a temporary restraining order in state court, though Kalshi has moved to shift the case to federal court. If successful, Nevada would become the second state, after Massachusetts, to block the company’s sports event contracts.
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