On Tuesday evening, the Nevada Gaming Control Board issued a cease-and-desist order to KalshEX LLC (Kalshi) and an accompanying statement declaring that “event-based contracts” on sporting events and election outcomes offered on Kalshi are “unlawful in Nevada unless and until approved by the Nevada Gaming Commission.”
The statement and order marks a significant escalation amid growing tensions between Kalshi and regulators at both the federal and state level. This faceoff, first reported by Dustin Gouker in the Event Horizon Substack, is the first known confrontation between a state authority and the company involving sports events.
The order gives Kalshi 10 days to “cease all unlawful activity” and notes that “criminal and civil penalties” may follow and “any future unlawful activity will be deemed willful violations.”
