The Nevada Resort Association (NRA) hopes that an advisement petition, alongside the Nevada Gaming Control Board (NGCB), can change the outcome of a case against prediction market operator Kalshi that had not gone in their favor.
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Judge Andrew Gordon said he'd rule quickly if the NRA could intervene in Kalshi's lawsuit against the NGCB for sending the company a cease-and-desist letter. A legal brief from Kalshi is due on Thursday, May 22, while the NRA has until May 28th.
Why Is The Nevada Resort Association Getting Involved?
The NRA believes it has a stake in this fight, stating that its , which include 70 casino resorts in the state, are at risk from Kalshi's sports event contracts.
In its filing with the court, the NRA demonstrates how Kalshi's sports event contracts are identical to traditional sports betting. The argument is that Kalshi is unfairly bying state-level regulations on sports gambling by calling their product something different.
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[T]oday a Nevada citizen can open a Kalshi and place $100 on the Vegas Golden Knights to win Game 5 of the playoff series against the Edmonton Oilers, returning a $180 prize if the Golden Knights prevail. The same Nevada citizen can go to a licensed and regulated sportsbook in Nevada and place $100 on the Vegas Golden Knights, returning the same prize of $180. |
The NRA also added in their case filing that Nevada receives tax revenues from resorts, while Kalshi does not pay taxes on its revenues. I'm not sure how that helps prove they have a stake in this fight, but it certainly adds context to the unfair advantage that Kalshi is receiving.
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What's The Full Story Of Nevada vs Kalshi?
If you're new to this particular legal fight between Kalshi and the Nevada Gaming Control Board, here is a timeline of events.
- January 23, 2025: Kalshi begins offering sports event contracts for the Super Bowl. March Madness event contracts would come soon after, with more sports markets opening up at a nearly exponential rate.
- March 4, 2025: The Nevada Gaming Control Board sends Kalshi a cease-and-desist letter. The letter says sports event contracts and election outcome contracts are "unlawful in Nevada unless and until approved as licensed gaming".
- March 28, 2025: KlashiEx LLC files a lawsuit against the NGCB, saying that as a federally regulated entity, the state's gaming control board has no right to force it to stop and seeks a temporary restraining order to continue its operations in Nevada.
- April 10, 2025: Judge Andrew Gordon ruled that the CFTC, not the NGCB, can bar Kalshi from operating in Nevada, specifically stating: "Because the CFTC has approved (or at least not yet disapproved) Kalshi’s sports-related contracts, the defendants cannot pursue civil or criminal liability against Kalshi for offering those contracts."
- April 23, 2025: The NGCB filed a motion to dismiss Kalshi's complaint.
- May 19, 2025: Judge Andrew Gordon says he will rule quickly on the NRA and NGCB's petition.
This case is mirrored in New Jersey and Maryland, where Kalshi faces the same legal challenges from gaming commissions in both states. Judge Andrew Gordon's ruling could prove pivotal in both cases and could see Kalshi sue Illinois, Ohio, and Montana, which also sent the prediction market operator a cease-and-desist letter.
