Nevada's Gambling Regulator Grills Kashli Over Prediction Markets
Nevada authorities issue notice to Kalshi, demanding explanation over sports and elections contracts issuance
Alright, let's chat about the recent drama unfolding in Sin City! The Nevada Gaming Control Board (NGCB) isn't messing around with Kashli, an American prediction market maker, and they decided to serve the company with a cease-and-desist order.
The Board wasn't playing around either when they slapped the order on March 4, setting a deadline of 5 p.m. on the 14th for Kashli to sort things out. But, lucky for them, the NCB granted an extension – ’cause even the coolest cats can use a bit more time on occasion.
Now, the NCB didn't spill the beans on Kashli's next move, but it seems they're trying to figure out how to respond to the cease-and-desist order. The NCB is claiming Kashli's offering is illegal in Nevada unless it gets the green light from the Nevada Gaming Commission first.
The NCB's letter, penned by Chairman Kirk Hendrick, listed several State Revised Statutes and Commission regulations Kashli is allegedly busting. It even hinted that this shenanigans could lead to some serious legal trouble, like criminal charges.
As of now, Kashli's offering on the outcomes of elections is on the chopping block, too. You see, licensed sports pools in Nevada can't take bets on election results, and Kashli's propositions are right in that forbidden zone.
Chairman Hendrick made it clear in his letter that any unlawful activity Kashli tries to sneak by the man can expect to be met with the full force of the law. Chairman Hendrick emphasized that any attempts to evade Nevada's regulations would lead to some stiff punishments.
But don't count Kashli out just yet! They've filed lawsuits challenging these orders in multiple states, including New Jersey, Illinois, Maryland, Montana, and Ohio. Kashli is countering that its operations fall under the Commodity Futures Trading Commission's (CFTC) jurisdiction and that federal law trumps state regulations.
In a twist of fate, the U.S. District Court for the District of Nevada has sided with Kashli temporarily, granting a preliminary injunction that allows them to keep operating in the state. So, for now, it looks like Kashli's predictions might just be worth a few chips in Vegas!
After the Nevada Gaming Control Board (NCGB) served Kashli with a cease-and-desist order, sports-betting enthusiasts are eagerly following the developments. While Kashli's sports-betting market is under scrutiny, they are arguing that their operations fall under the Commodity Futures Trading Commission's (CFTC) jurisdiction, making state regulations inapplicable.
