The Nevada Gaming Control Board (NGCB) issued a warning to licensees on Wednesday about the potential disciplinary measures they may face for offering sports event contracts on prediction markets, following similar alerts from Ohio and Michigan earlier in the year. According to the NGCB, such contracts, whether listed under the Commodity Futures Trading Commission (CFTC) or not, fall under the category of “wagering activity” as defined by state law. The CFTC serves as the federal financial regulator for prediction markets.
In their statement, the NGCB specified that licensees involved in offering contracts on sports, elections, or pop culture events could face suitability evaluations or other disciplinary actions. Examples mentioned include event contracts linked to outcomes or partial outcomes of sporting events, the World Series of Poker, the Oscars, esports, and political elections. Only entities with a nonrestricted gaming license and sports pool approval in Nevada can offer such contracts, provided they comply with all related sports wagering requirements.
This recent notice builds upon comments made by NGCB member George Assad during the board’s hearing on October 8. Assad criticized prediction markets, dismissing them as “nothing more than a word salad” and praised court rulings against platforms Kalshi and Crypto.com in Maryland and Nevada. He emphasized that any derivative contract is essentially a sports wager and falls under the jurisdiction of the Nevada Gaming Commission and the NGCB.
Throughout 2025, Nevada has been engaged in legal battles with prediction markets. The state first issued a cease-and-desist letter to Kalshi in March. Kalshi responded by filing a lawsuit and secured a preliminary injunction in April, allowing it to continue operations temporarily. The case is currently under appeal. Crypto.com and Robinhood also received cease-and-desist orders and subsequently sued Nevada in June and August, respectively. Notably, Crytpo.com’s request for an injunction was denied by Judge Andrew Gordon, who had previously ruled in favor of Kalshi. While the cases shared similar contexts, their legal arguments differed slightly. Judge Gordon deemed Kalshi likely to succeed by arguing that federal commodities law preempted state wagering law but was not persuaded by Crypto.com’s definitions regarding “swaps.”
During the Global Gaming Expo in Las Vegas, prediction markets were a significant topic of discussion. NGCB Chair Mike Dreitzer, who assumed his role in June, participated in a regulatory panel addressing this issue. Dreitzer’s stance on prediction markets, while acknowledging Nevada’s established position, presented a more open approach than Assad’s. He expressed a willingness to integrate innovation within legal confines, stating, “We want to foster innovation, we want to find a way to bring it to Nevada as early as possible, but it has to be done in conjunction with the legal requirements.”
Dreitzer emphasized Nevada’s openness to new technology and innovation, contrasting with other senior regulators’ more critical perspectives on prediction markets. This was evident in the same conversation with Mike Leara, executive director of the Missouri Gaming Commission, who was less favorable towards these platforms. Dreitzer’s viewpoint aligns with his background, having held senior roles at tech-focused gaming companies like BMM Testlabs, Gaming Arts, and Ainsworth Game Technology before joining the NGCB.
The NGCB acknowledged receiving “direct inquiries” about its stance on prediction markets. Prominent commercial bookmakers like FanDuel and DraftKings, which do not operate in Nevada due to the state’s in-person account registration requirement, were highlighted. Some sports betting and DFS companies have shown interest or formed partnerships, such as FanDuel’s collaboration with CME Group and Underdog’s partnership with Crypto.com. However, others like Caesars Sportsbook and BetMGM have refrained from substantial investments in this area. These two companies, the largest sports betting operators in Nevada, did not respond to requests for comment and have not publicly expressed interest in prediction markets.
The Nevada Resort Association (NRA), representing the state’s largest retail casino operators, remains a vocal opponent of prediction markets. The NRA, approved as an intervenor in the state’s appeal against Kalshi, argues that these platforms equate to “gambling with no regulation” or consumer protections. NRA President Virginia Valentine expressed concerns about the lack of responsible gambling requirements and state income tax contributions from prediction markets. She questioned whether they represent the future of gambling or the demise of sportsbooks, expressing uncertainty about the platform’s impact. The ongoing legal disputes are expected to persist, with all parties closely monitoring developments.
As Nevada continues its legal fight, the outcome could significantly impact the future of prediction markets in the state. While regulators like Dreitzer express a willingness to adapt and integrate new technologies within a legal framework, others remain wary of the changes prediction markets could bring to the gambling industry. The ongoing court battles and regulatory discussions highlight the complex nature of balancing innovation with compliance in an evolving gaming landscape.
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