Nevada gaming watchdog extends deadline for KalshiEX's response to cease-and-desist order
The Nevada Gaming Control Board (NGCB) issued a cease-and-desist order to KalshiEX LLC, operating as Kalshi, on 4 March 2025. The NGCB alleges that Kalshi’s “event-based contracts,” which allow users to trade on outcomes of events such as sporting events and elections, constitute unlicensed sports wagering under Nevada law. The Board stressed that offering such contracts without proper licensing violates state regulations and could result in criminal and civil penalties.
The @NevadaGCB issued the following news release today. pic.twitter.com/BxFLaZgn1A
— Nevada Gaming Control Board (@NevadaGCB) March 14, 2025
Extension granted
Initially, Kalshi was required to cease all related activities in Nevada by 14 March 2025. However, the company’s legal representatives requested additional time to address the NGCB’s concerns. The Board agreed to this extension, although the specific duration has not been disclosed.
According to NGCB Chairman Kirk Hendrick, any entity offering wagering services in Nevada must undergo a rigorous licensing process. He warned that unauthorised operations attempting to bypass Nevada’s regulatory framework would face severe consequences.
Kalshi’s position
KalshiEX operates as a federally regulated financial exchange under the Commodity Futures Trading Commission (CFTC). The platform enables users to trade on the outcomes of various real-world events through binary contracts. Despite federal oversight, Nevada regulators maintain that offering event-based betting within the state requires adherence to local gaming laws.
As of now, Kalshi has not publicly indicated whether it will contest the NGCB’s order or comply by ceasing its event-based contract offerings in Nevada.
The NGCB has stated that any continued unauthorised activities by Kalshi in Nevada will be considered wilful violations, subject to enforcement actions. Stakeholders await Kalshi’s formal response to determine the potential implications for the company’s operations within the state.
Kalshi faces CFTC heat
Kalshi has also been facing scrutiny from the CFTC regarding its expansion into sports-related contracts. The company remains determined to push forward with its offerings despite regulatory challenges. Kalshi executives argue that their platform falls under financial market regulations rather than gambling laws, positioning it as a legitimate exchange rather than a sportsbook.
