United States
United Kingdom
Summary:
- Nevada regulators told licensees they risk their gaming license if they get involved in sports prediction markets in other states.
- The notice followed a federal ruling that lifted protections for Kalshi and denied Robinhood’s request to operate in Nevada.
- The Board restated that event-based contracts count as wagering and warned operators.
The Nevada Gaming Control Board issued a firm and harsh warning to the casino industry on Tuesday night: stay away from sports prediction markets in other states, or you could put your Nevada gaming license at risk.
The warning came shortly after U.S. District Judge Andrew Gordon decided to dissolve Kalshi’s preliminary injunction and reject Robinhood’s request for a temporary restraining order that would have allowed it to operate in Nevada.
Earlier this year, Kalshi had secured that injunction to prevent the Board from taking civil or criminal action against its sports prediction markets. Robinhood later tried for similar protection.
Following the ruling, the Board reached what it called an agreement in principle with Robinhood. As Board Chair Mike Dreitzer explained,
In light of Judge Gordon’s ruling, the Board and Robinhood have reached an agreement in principle, under which Robinhood has agreed to cease offering new sports event contracts in Nevada, pending further proceedings.
He added that, unlike Robinhood and Crypto.com, Kalshi chose not to make a similar agreement.
Kalshi instead has asked Judge Gordon to stay his ruling pending its appeal. The Board will vigorously oppose that motion and will continue to expeditiously pursue a path through the courts to stop Kalshi’s unlawful conduct.
Preserving Free Competition in Nevada
Dreitzer also reminded licensees that the Board’s role is broader than the latest dispute. He said the agency works to
uphold its statutory charge to protect the safety, morals, good order, and general welfare of the inhabitants of the state, to foster the stability and success of gaming, and to preserve the competitive economy and policies of free competition of the state of Nevada.
Along with the court update, the Board used the notice to restate its position on event-based contracts.
According to the guidance,
The Board considers offering sports event contracts, or certain other events contracts, to constitute a wagering activity under (state law).
That applies whether the contracts appear on a Commodity Futures Trading Commission-regulated exchange or anywhere else. The Board listed examples it views as wagering activity, including contracts tied to sporting events, the World Series of Poker, the Oscars, esports and political elections.
In Nevada, these offerings are allowed only for operators with a full gaming license and sports pool approval.
The Board also warned about the consequences that that Nevada licensees could face if they decide to offer these products, or partner with companies that do, as they could raise questions regarding their “good character and integrity”.
