Nevada Sues Kalshi Over Unlicensed Sports Betting

Nevada gaming regulators filed a lawsuit against prediction market operator Kalshi on Tuesday, accusing the company of offering unlicensed sports betting contracts that violate state law. The action, brought by the Nevada Gaming Control Board and the state attorney general in Carson City District Court, seeks an injunction to halt Kalshi's operations in the state.

The regulators contend that Kalshi's event contracts, which allow users to wager on outcomes of sporting events such as football and basketball games, constitute wagering activity under Nevada's gaming statutes. They argue that the platform has not obtained the required license and fails to comply with rules prohibiting wagers by individuals under 21 or safeguards against insider betting and match fixing. "Despite making wagers, sports betting and other gaming activity accessible in the State of Nevada, Kalshi is not licensed in Nevada and does not comply with Nevada gaming law," the board stated in the complaint.

The lawsuit follows a decision earlier that day by the U.S. Court of Appeals for the Ninth Circuit, which denied Kalshi's request to block the state from pursuing enforcement. This lifted a prior temporary...