The Nevada Gaming Control Board’s enforcement action against Kalshi underscores a heated jurisdictional clash over event-based trading within state and federal legal frameworks.
The Nevada Gaming Control Board has initiated a civil enforcement case against KalshiEX LLC, alleging that the federally regulated prediction market engaged in unlicensed wagering in the state. The complaint, filed in Carson City, seeks to block Kalshi’s event-based trading activities, including sports-related wagers. This follows a reported 27-fold increase in Super Bowl Sunday trading volume compared to last year. Kalshi disputes Nevada’s authority, arguing its operations comply with federal law, and has petitioned to transfer proceedings to federal court, highlighting an ongoing jurisdictional conflict between state gambling regulations and federally overseen prediction markets.