Following a decisive development in federal court, Nevada gaming regulators have intensified their warning to casino operators about engaging with sports prediction markets outside the state. Late Tuesday, the Nevada Gaming Control Board circulated a fresh industry notice, making clear that licensees risk their regulatory standing if they participate in such offerings beyond Nevada’s borders.
Federal Court Shifts the Legal Landscape
The Board’s announcement came shortly after U.S. District Judge Andrew Gordon issued an order dissolving Kalshi’s preliminary injunction and rejecting Robinhood’s attempt to secure a temporary restraining order related to its Nevada operations. Kalshi had initially obtained the injunction to block Nevada from taking civil or criminal action over its sports-based prediction markets. Robinhood then sought similar temporary relief for its own products.
In the wake of Judge Gordon’s ruling, Board Chair Mike Dreitzer confirmed that an arrangement had been reached with one of the companies involved.
“In light of Judge Gordon’s ruling, the Board and Robinhood have reached an agreement in principle, under which Robinhood has agreed to cease offering new sports event contracts in Nevada, pending further proceedings,”he said.
Dreitzer contrasted Robinhood’s position with Kalshi’s response. “Unlike both Robinhood and Crypto.com before them, Kalshi has declined to reach an agreement with the Board to stop operating in Nevada pending further proceedings, despite today’s clear legal ruling and the fact that they were provided a very reasonable opportunity to do so. Kalshi instead has asked Judge Gordon to stay his ruling pending its appeal. The Board will vigorously oppose that motion and will continue to expeditiously pursue a path through the courts to stop Kalshi’s unlawful conduct.”
Board Emphasizes Mandate and Reinforces Guidance
Dreitzer explained in his message to the industry that the agency remains focused on its statutory responsibilities “to uphold its statutory charge to protect the safety, morals, good order, and general welfare of the inhabitants of the state, to foster the stability and success of gaming, and to preserve the competitive economy and policies of free competition of the state of Nevada.”
At the same time, the Board used the moment to reiterate earlier guidance on event-based contracts, clarifying how state law applies to these offerings. According to the notice, “The Board considers offering sports event contracts, or certain other events contracts, to constitute a wagering activity under (state law). Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere.” The notice also reaffirmed that contracts tied to sporting results, esports, political elections, the Oscars, or the World Series of Poker fall squarely within its jurisdiction.
The Board reiterated that only entities with a nonrestricted Nevada gaming license and sports pool approval may operate these markets in the state, and only if they meet all regulatory requirements governing sports wagering.
Potential Consequences for Non-Compliant Licensees
The notice further cautioned that any Nevada licensee offering event contracts—either directly in another state or through outside partnerships—must ensure compliance wherever they operate. It stated: “If a licensee offers sports and other event contracts in another state without complying with the other state’s restrictions, prohibitions, or licensing regime; partners with another entity that engages in such activities; or acts in violation of a compacted tribal right, the licensee may be subject to discipline under the Gaming Control Act.”
The Board emphasized that unlawful wagering activity or affiliations elsewhere may cast doubt on a licensee’s integrity and suitability. “The Board remains committed to fostering stability and promoting a thriving legal gaming industry,” the notice added, promising continued updates as litigation progresses.
Source:
‘’Nevada regulators caution gaming industry after court decision on prediction markets’’, cdcgaming.com, November 25, 2025.
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