The Nevada Gaming Control Board (NGCB) has issued a formal notice to licensees cautioning against offering sports event contracts on prediction markets, marking the latest state warning amid ongoing legal battles. Similar advisories were issued earlier this year in Ohio and Michigan.
The notice clarifies that offering contracts tied to sports, elections, or pop culture events qualifies as “wagering activity” under Nevada law. This applies regardless of whether the contracts are listed on a Commodity Futures Trading Commission (CFTC)-regulated exchange. Licensees that provide these contracts—or partner with entities that do—either in Nevada, other states, or on tribal lands could face suitability evaluations or disciplinary action.
“Examples of event contracts that the board specifically considers to be wagering subject to its jurisdiction include event contracts based on the outcome or partial outcome of any sporting or athletic event, or other selected events such as the World Series of Poker, the Oscars, esports and political elections,” the notice stated.
Offerings are only allowed in Nevada if the entity complies with other sports wagering requirements, including wagering accounts and sportsbook systems.
Echoing warnings from NGCB officials
The notice follows comments by NGCB member George Assad at the board’s 8 October hearing, where he dismissed prediction markets as “nothing more than a word salad.” Assad referenced court rulings against Kalshi and Crypto.com, insisting that derivative or event contracts are effectively sports wagers and fall under the board’s jurisdiction.
Nevada has pursued multiple legal actions against prediction markets in 2025, including cease-and-desist letters to Kalshi, Crypto.com, and Robinhood. Kalshi obtained a preliminary injunction allowing operations to continue, while Crypto.com’s injunction request was denied, and Robinhood’s case remains pending.
Industry response and debate
At the Global Gaming Expo (G2E), NGCB Chair Mike Dreitzer emphasized a nuanced stance. While acknowledging regulatory concerns, he signaled a willingness to explore innovation if compliant with Nevada law:
“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 said.
Major commercial sportsbooks such as FanDuel and DraftKings have largely stayed away from Nevada due to in-person account registration rules. Some companies, including FanDuel (via CME Group) and Underdog (via Crypto.com), explored partnerships with prediction markets, while leading operators like Caesars Sportsbook and BetMGM have refrained.
Casino operators, led by the Nevada Resort Association, have criticized prediction markets as unregulated gambling lacking consumer protections, responsible gaming measures, or state taxes.
Federal context and growth of prediction markets
The CFTC oversees prediction markets, but uncertainty remains over state vs. federal authority. Kalshi and Polymarket have continued operations in certain jurisdictions, drawing attention for high-profile markets on elections and sports outcomes. Polymarket, backed by the NYSE parent company, recently allowed $500 million in trading for the 2024 presidential election, highlighting the rapid growth of this largely unregulated sector.
Experts predict ongoing litigation may reach the U.S. Supreme Court by 2027, resolving conflicts between state gaming authority and federal oversight. Meanwhile, Nevada regulators continue scrutinizing these platforms for compliance, consumer protection, and the integrity of the state’s licensed gaming market.
Source:
“Nevada gaming control board – notice to licensees”, gaming.nv.gov, October 15, 2025
The post Nevada Gaming Board Warns Licensees on Prediction Markets first appeared on RealMoneyAction.com.