If you were hoping to augment your monthly egg fund with profits from prediction markets like Kalshi and you live in Nevada, we have some bad news for you. Earlier this week the Nevada Gaming Control Board (NGCB) announced that as of March 14, event prediction markets would no longer be available to Nevada residents.
The NGCB described the letter in a on social media which saying, “Regarding event-based contracts on the outcome of elections, the letter informs Kalshi that even licensed sports pools in Nevada are prohibited from accepting wagers on such activity. The letter therefore advises Kalshi that its actions are in direction violation of Nevada’s public policy.”
In the letter, the NGCB directs predictions market operators to cease-and-desist all activity in the state by March 14.
Not surprisingly, representatives of the predictions market industry had some thoughts on the ban.
A representative of Kalshi told SCB Americas, “While we’re disappointed with the Commission’s assessment, Kalshi has always held the utmost respect for regulators and the regulatory process. We’ve been a federally regulated exchange for over four years and a federally regulated clearinghouse for about six months.
“We are proud to have paved the way for prediction markets to thrive in the U.S. We look forward to a swift resolution to this matter and to ensuring that Americans continue to have access to safe, regulated, and transparent prediction markets.”
Nevada’s move is particularly surprising, given the opposition to prediction markets in the regulated gaming industry. It’s also a move that might backfire, given the fact that the likely next Chairman of the Commodities Federal Trade Commission (CFTC) is Kalshi Board Member Brian Quintenz.