Nevada’s gaming authorities have filed a lawsuit against Kalshi, a company that runs an online platform where people bet on sports and other events. The state says Kalshi is operating without the required licenses and is letting people under 21 place bets, both of which break Nevada law.  

The case follows a federal appeals court that denied Kalshi’s attempt to stop the lawsuit, and it comes after a Trump‑era statement that only the federal government should regulate this industry.  

Kalshi argues its “event contracts” are more like financial investments than gambling, a view echoed by the Commodity Futures Trading Commission. The CFTC’s chair has publicly said the agency will defend its exclusive authority over such markets.  

Meanwhile, the platform’s rapid growth has hurt traditional Nevada gambling during big events like the Super Bowl. Kalshi’s business surged 27 times this year compared to last, while state casinos saw a decline in revenue.  

The political ties are notable: Donald Trump Jr. serves as an adviser for Kalshi and also has a stake in a rival platform, Polymarket. The Trump family’s media arm announced plans to launch its own prediction market in January.  

Prediction markets can create opportunities for insider trading. A blockchain study found that a tiny fraction of Polymarket users captured the majority of its profits, over $3. 7 billion.  

High‑profile bets have made headlines, such as a user who earned $128, 000 after Israel bombed Iran following a prediction about the outcome. Other bettors profited from political events in Venezuela and Colombia, raising concerns about market manipulation.  

Nevada’s lawsuit seeks to enforce state regulations and protect young bettors, while the broader debate continues over whether these platforms should be treated as gambling or financial services.

Nevada Battles Unlicensed Sports Prediction Site

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