Nevada Expansion Discussions with Kalshi Addresssed by Flutter
Flutter Entertainment Thrives in US Marketplace, While Kalshi Faces Legal Dispute in Nevada
Flutter Entertainment, a leading name in the global online gaming and sports betting industry, made its debut on the New York Stock Exchange in January 2024. The company reported impressive revenues of $14 billion and adjusted EBITDA of $2.4 billion in 2024, signifying its continued growth in the US market.
However, while Flutter Entertainment is making strides, another company, Kalshi, is embroiled in a legal dispute with the Nevada Gaming Control Board (NGCB) over its sports betting operations in the state.
Kalshi, a prediction market platform offering sports event contracts, was issued a cease-and-desist order by the NGCB in March, demanding it stop offering sports betting contracts in Nevada without regulatory approval. The dispute revolves around whether Kalshi's operations are subject to state gambling laws or are exclusively regulated by the Commodity Futures Trading Commission (CFTC) under federal law.
Nevada regulators and casino associations argue that Kalshi operates illegal gambling within the state, threatening regulated casino sportsbooks and lacking protections like age restrictions and compulsive gambling programs. On the other hand, Kalshi maintains that it operates as a Designated Contract Market (DCM) overseen by the CFTC and is not engaged in traditional sports gambling protected by state law preemption under the Commodity Exchange Act.
This legal dispute is not unique to Nevada. Similar lawsuits and regulatory battles are ongoing in other states including Maryland and New Jersey, with mixed court rulings adding complexity to the conflict between federal and state regulatory authority over Kalshi’s sports betting operations.
Meanwhile, Flutter Entertainment, through its subsidiary FanDuel, is considering expansion into Nevada. FanDuel, the No. 1 online sportsbook in the US, already has a manufacturers and distributors license in Nevada that hasn't been used. The company is also providing branding and oddsmaking at the Fremont Hotel & Casino, a Boyd Gaming property in downtown Las Vegas.
In a separate development, Boyd Gaming announced the sale of its 5% interest in FanDuel to Flutter Entertainment for $1.75 billion.
Despite these developments, Kalshi continues to fight the cease-and-desist letter, suing the NGCB in response. A federal court has prohibited Nevada from enforcing the cease-and-desist order against Kalshi, but this is only a preliminary injunction.
The Nevada Gaming Control Board maintains that Kalshi is operating illegally in Nevada because it does not have a license. However, the ongoing legal battle suggests a complex interplay between federal and state laws in regulating the burgeoning sports betting industry.
Flutter Entertainment appeared before the Nevada Gaming Control Board for routine business ahead of its second-quarter earnings report. The company's continued growth and potential expansion in Nevada will be closely watched by industry observers.
In the first quarter of 2025, Flutter Entertainment reported continued strong group revenue growth of 8% and group adjusted EBITDA growth of 20%. The company's growth trajectory, coupled with its strategic moves in the US market, positions it well for future success, regardless of the outcome of the legal dispute involving Kalshi.
Despite the ongoing legal dispute between the Nevada Gaming Control Board and Kalshi over sports betting operations, Flutter Entertainment, through its subsidiary FanDuel, is considering expanding into Nevada, potentially capitalizing on the opportunities in the sports-betting sector. On the contrary, Kalshi, a prediction market platform, continues to contest the cease-and-desist order issued by the Nevada Gaming Control Board, maintaining that it operates under federal law and not as a traditional sports-betting entity.
