Nevada Resorts Enter Legal Fight Over Sports Prediction Platforms
June 6, 2025 Publisher
KalshiEx LLC against Nevada’s gaming authorities. U.S. District Judge Andrew Gordon issued the ruling Monday, allowing the NRA to defend its ’ interests as the debate over prediction markets intensifies.
Judge Allows Casino Group to Kalshi Lawsuit
Kalshi launched the suit in March after the Nevada Gaming Control Board ordered the company to stop offering sports prediction contracts. Regulators argued the contracts were too similar to sports betting, which Kalshi is not licensed to conduct in the state. A temporary injunction has since blocked the state from enforcing that order.
In his ruling, Judge Gordon wrote, “NRA’s have significantly protectable interests in their Nevada gaming licenses that they have spent substantial sums to obtain, maintain and protect.” Kalshi had opposed the NRA’s involvement, calling the request untimely, but the judge ruled that the 47-day delay was reasonable.
The NRA represents 70 casino resorts and pointed to the $7.8 billion in sports bets placed legally in Nevada in 2024. It warned that allowing unlicensed platforms like Kalshi to operate could cause “seismic” disruptions in the state’s tightly regulated gambling market.
State Laws vs. Federal Oversight
Kalshi argues it operates legally under the oversight of the Commodity Futures Trading Commission (CFTC), a federal body it claims takes precedence over state regulators. This, Kalshi contends, gives it the right to offer sports prediction contracts in both regulated and unregulated states, including Nevada, California, and Utah.
The court acknowledged this central conflict, stating that a Kalshi victory could disadvantage Nevada license holders. “Kalshi and others would not have to comply with Nevada’s comprehensive gaming laws,” the order said, including rules on who can bet and what kinds of bets are allowed. Such an outcome could erode the structure that currently s a fair and profitable market.
Crypto.com Files Similar Suit
The legal battle expanded this week as the North American Derivatives Exchange Inc., doing business as Crypto.com, filed its own lawsuit in Nevada federal court. Like Kalshi, Crypto.com is challenging a cease-and-desist order from the Gaming Control Board, issued on May 20. That order, signed by Chair Kirk Hendrick, gave the company until May 22 to halt operations.
Crypto.com is now seeking injunctions to prevent the state from blocking its services. The case has been assigned to U.S. District Judge James Mahan.
Arizona Pressures the CFTC
Outside of Nevada, Arizona is pushing back against prediction markets. In a letter to the CFTC, Arizona Department of Gaming Director Jackie Johnson urged the commission to ban such platforms outright. “In truth, there is no meaningful difference between buying one of the contracts offered by the [prediction market] and placing a bet with any other sportsbook,” she wrote.
Johnson criticized the CFTC for inaction, noting it canceled a regulatory roundtable in April and recently dropped a case against Kalshi over political betting contracts. Her letter was sent to Acting Chair Caroline Pham, who is expected to step down soon, casting doubt on whether federal action is imminent.
Source:
“Nevada Resort Association permitted to enter sports-betting lawsuit”, reviewjournal.com, Jun 4, 2025
