Casino Association in Nevada Granted Court Authorization to Engage in Legal Battle over Sports Betting
Casino Lobby Joins Legal Battle as Nevada Takes on Prediction Market Platform
The Nevada Resort Association (NRA) just gained a stake in the ongoing legal fight between prediction market platform Kalshi and Nevada's top gaming regulators. This escalating war is a blow to Nevada's gaming industry, which views Kalshi's prediction contracts as a looming threat to its closely monitored sports betting system.
Courts Siding with Casinos, Inviting NRA into the Fray
The Las Vegas Review-Journal reported that US District Court Judge Andrew Gordon has given the green light for the NRA to join the battle last June 2nd. The NRA, a lobbying group for 70 Nevada casino resorts, will now join forces with Kalshi in their lawsuit against Nevada's cease-and-desist order issued in early 2025.
Kalshi, which began offering event-based prediction contracts linked to sports results in late 2024, was ordered to halt operations by the Nevada Gaming Control Board (NGCB) on March 4. The NGCB deemed these activities as unauthorized sports betting.
Legal Race Kicked off by Kalshi
Kalshi fired back with a lawsuit on March 28, claiming their activities are legal under federal oversight by the Commodity Futures Trading Commission (CFTC). They were since granted a temporary injunction, shielding them from regulatory action while the case unfolds.
Judge Gordon justified NRA's involvement by noting that the financial welfare of its members is at stake. Casino businesses have invested heavily to secure gaming licenses under Nevada's strict laws, and they could face unfair competition if Kalshi skirts the same regulations, the judge opined.
Casinos Warn: Risking Billions by Bypassing State Rules
The NRA argues that let unlicensed platforms like Kalshi operate prediction markets similar to sports bets, it would alter the state's gambling landscape. The group's court documents suggested that such actions could unwind years of regulatory progress and endanger the $7.8 billion in annual sports betting money in Nevada alone.
Kalshi Counter Arguments: Federal Regulation Trumps State
Kalshi maintains that their contracts are financial instruments, not traditional bets, and should be regulated at the federal level. They assert that the CFTC's authority trumps state gaming rules, enabling them to operate in states that ban or limit sports betting.
Nevada isn't the only state standing against Kalshi. At least six states with legal sports betting have issued similar stop orders, while another company, Crypto.com (North American Derivatives Exchange), filed a lawsuit in Nevada federal court in May after receiving a regulatory warning. Similarities between these two lawsuits imply a wider legal examination on who holds the reins for the future of prediction markets linked to sports events.
The Casino Lobby, represented by the Nevada Resort Association (NRA), has entered a legal battle against prediction market platform Kalshi, joining forces in their lawsuit against Nevada's cease-and-desist order, as they view Kalshi's sports-betting related contracts as a potential threat to the state's sports-betting system.
The NRA, who represents 70 casino resorts, claims that allowing unlicensed platforms like Kalshi to operate prediction markets like sports bets would alter the state's gambling landscape, posing a risk to billions of dollars in annual sports betting revenue and potentially undoing years of regulatory progress in Nevada alone.
