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The Nevada Gaming Control Board on Tuesday (4 March) became the first US regulator to send a cease-and-desist letter to Kalshi, the controversial New York-based prediction market. <\/strong><\/p>\n In a release, the NGCB said that offering sports and election contracts \u201cis unlawful in Nevada, unless and until approved as licenced gaming by the Nevada Gaming Commission\u201d. Kalshi is to cease operations in the state by 5pm 14 March or be subject to legal action. Even past operations, the board said, \u201cremains subject to criminal and civil penalties\u201d. <\/p>\n The letter represents the first action taken against prediction markets at the state level. Last fall, Kalshi survived a legal challenge in federal court<\/a> from the Commodities Futures Trading Commission (CFTC). That has allowed the platform, and others such as Crypto.com, to continue operating, although future challenges could be coming. <\/p>\n Federal officials originally sought to bar Kalshi and others from offering election markets. Those efforts were unsuccessful, and before the November election the platforms took in billions worth of contracts<\/a>. But in January, Kalshi began offering sports contracts<\/a>, which has caused the gaming industry to take notice. <\/p>\n Notably, the NGCB mentioned both election and sports contracts as being illegal in the state. It said that \u201ceven licenced sports pools in Nevada are prohibited from accepting wagers\u201d on elections. This could be another angle for state regulators to pursue moving forward. <\/p>\n In a statement <\/a>on X, Kalshi CEO Tarek Mansour said the company was \u201cdisappointed\u201d by the letter, but vowed to \u201cstay committed to our approach and keep paving the way for regulated prediction markets to thrive in the US\u201d.<\/p>\n \u201cTo the prediction markets community: last year proved how important our mission is,\u201d he continued. \u201cWe have fought hard to get to this point, but the job\u2019s not finished and the work will continue till prediction markets achieve their full potential\u201d.<\/p>\n Board chair Kirk Hendrick, who will step down from the role at the end of Nevada\u2019s legislative session, said that all \u201cattempts to circumvent Nevada\u2019s right to regulate gaming activity within its borders\u201d will face legal action. <\/p>\n \u201cEvery sports pool in Nevada must undergo an extensive investigation prior to licencing, must adhere to strict regulation once licenced, and must pay all applicable taxes and fees,\u201d he continued. <\/p>\n His comments are similar to those submitted to the CFTC by several tribal and commercial groups <\/a>last month. The commission will host a roundtable on prediction markets on April 30, but the exact details and scope of the meeting are unknown. <\/p>\nKalshi accused of circumventing law <\/h2>\n