Just ahead of its deadline, the Nevada Gaming Control Board late Friday gave Kalshi, an American financial exchange and prediction market maker, an extension to respond to a cease-and-desist order over offering event-based contracts in the state.
The Board, which issued the order on March 4 with a deadline of 5 p.m. March 14, said in a press statement Friday that it didn’t object to a request from Kalshi’s outside counsel for a “limited period of additional time for Kalshi to address the NGCB’s order.”
The release didn’t say whether Kashi intends to comply or fight the order, which argues that the company’s offering “is unlawful in Nevada, unless and until approved as licensed gaming by the Nevada Gaming Commission.”
The NGCB letter detailed multiple Nevada Revised Statutes and Nevada Gaming Commission regulations that Kalshi is violating and advised the company that such conduct could result in criminal charges.
Regarding event-based contracts on the outcome of elections, the Board’s letter informed Kalshi that even
licensed sports pools in Nevada are prohibited from accepting wagers on them.
The demand letter, signed by NGCB Chairman Kirk Hendrick, explained that past unlawful action remains subject to criminal and civil penalties and any future unlawful activity will be deemed willful violations.
“Every sports pool in Nevada must undergo an extensive investigation prior to licensing, must adhere to
strict regulation once licensed, and must pay all applicable taxes and fees.” Hendrick said. “Any unlawful attempts to circumvent Nevada’s right to regulate gaming activity within its borders will be met with the full force of criminal and civil penalties.”
