Nevada Gaming Board Extends Deadline for Kalshi's Cease-and-Desist Order
Kalshi, a regulated exchange and prediction market company, has received additional time from the Nevada Gaming Control Board (NGCB) to address a cease-and-desist order that was originally due March 14, 2025.
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The NGCB issued the initial cease-and-desist order on March 4, citing violations of Nevada Revised Statutes and Gaming Commission Regulations regarding sports event and election prediction contracts. The board's main concerns include:
- Offering sports event contracts without proper gaming licenses
- Providing election-based wagering, which is prohibited even for licensed operators
- Operating without undergoing required regulatory investigations
The specific length of the extension hasn't been disclosed by the NGCB.
Kalshi's Current Operations:
- Regulated by the Commodity Futures Trading Commission
- Offers contracts priced between $0.01 and $0.99
- Pays $1 for each correct prediction
- Began sports event trading in January 2025
NGCB Chairman Kirk Hendrick emphasized that all sports pools in Nevada must:
- Complete extensive investigations before licensing
- Follow strict regulations
- Pay applicable taxes and fees
- Obtain proper approval from the Nevada Gaming Commission
The board has warned that any unauthorized gaming activity within Nevada's borders will face both criminal and civil penalties.