Nevada regulator warns operators that event contracts are gambling under state law

The Nevada Gaming Control Board (NGCB) has warned licensed gambling operators that so-called “sports event contracts” and other prediction-market style products are considered wagering under state law, regardless of whether they are listed on federally regulated financial exchanges.

In an industry notice released on Wednesday, the regulator said such contracts fall within the definition of gambling under NRS 463.0193 and 463.01962.

The Board considers offering sports event contracts, or certain other event contracts, as constituting wagering activity. Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission (CFTC) or elsewhere.

The clarification comes as litigation mounts from platforms such as Kalshi and Robinhood Derivatives LLC seeking to operate prediction markets on elections, sports, or awards shows without being subject to state gambling rules.

The NGCB said contracts based on sporting or athletic outcomes, esports, the World Series of Poker, the Oscars, or political elections are collectively treated as “Sports and Other Event Contracts.”

Such contracts can be offered in Nevada only by operators holding a nonrestricted gaming license with sports pool authorization.

The regulator cautioned that Nevada licensees could face disciplinary action if they operate or partner with entities offering unlicensed contracts either in Nevada or in other states.

The Board said such conduct will be taken into account when evaluating the suitability of both existing licensees and new applicants.

The guidance comes amid heightened tension between federal and state authorities over how to classify prediction markets. The CFTC recently dropped its appeal in a case allowing Kalshi to list political event contracts, bolstering arguments for a national framework.

The NGCB has separately raised concerns over FanDuel's partnership with CME Group and challenged Crypto.com's attempts to offer similar instruments in Nevada.

The regulator said it would continue to monitor such developments as it seeks to protect the state’s control over gambling activity.