Nevada Regulator Issues Formal Warning Against Prediction Markets, Threatening Licensee Discipline

• The Nevada Gaming Control Board (NGCB) has issued a formal notice warning its licensees that offering prediction markets or event contracts is considered illegal sports wagering.
• The NGCB warning states that any licensee involved with these platforms, even in other states or on tribal lands, could face disciplinary action, including a review of their suitability to hold a Nevada gaming license.
• The move is a significant escalation in the ongoing legal war between Nevada and prediction market platforms like Kalshi and Crypto.com, which argue they are federally regulated financial products.
• The NGCB warning follows recent comments from board member George Assad, who publicly slammed prediction markets as “nothing more than a word salad” and a “sports wager.”
• The regulator’s hardline stance creates a major compliance and business risk for any Nevada gaming licensee that has partnerships or investments in the burgeoning prediction markets sector.

A Clear ‘Red Line’ from the Nevada Gaming Regulator

Nevada’s top gaming regulator has dramatically escalated its fight against prediction markets, issuing a formal notice that warns its own licensees they could face disciplinary action for any involvement with the controversial platforms. The NGCB warning, sent out on Wednesday, is a powerful “shot across the bow” to the entire industry and solidifies the state’s hardline stance.

The notice from the Nevada Gaming Control Board (NGCB) makes it unequivocally clear that it considers “event contracts” based on sports, elections, or other outcomes to be a form of wagering activity that falls under its exclusive jurisdiction. Crucially, the board stated this is the case regardless of whether the contracts are offered on an exchange regulated by the federal Commodity Futures Trading Commission (CFTC).

The Threat of Disciplinary Action for Licensees

The most significant and potentially chilling aspect of the NGCB warning is its direct threat to the Nevada gaming license holders themselves. The notice warns that any licensee that offers these products or enters into partnerships with prediction market platforms-whether in Nevada, another state, or on tribal lands-could be subject to a suitability review or other forms of disciplinary action.

“ Offerings for Sports and Other Events Contracts may be conducted in Nevada only if the offering entity possesses a nonrestricted gaming license with sports pool approval in Nevada,” the notice stated, leaving no room for ambiguity.

A Multi-Front Legal and Regulatory War

This formal NGCB warning is the latest salvo in a multi-front war that Nevada has been waging against the prediction markets sector throughout 2025.

• March: Nevada becomes the first state to issue a cease-and-desist letter to Kalshi.
• April: Kalshi sues the state in response and wins a preliminary injunction, allowing it to continue operating for now. The state is appealing this decision.
• June/August: Crypto.com and Robinhood also sue the state after receiving similar cease-and-desist orders.
• October: In a significant twist, the same judge who ruled for Kalshi denies an injunction request from Crypto.com, creating legal uncertainty.

A Nuanced Stance from the Top?

While the board’s official position and the public comments from members like George Assad are aggressive, the new NGCB Chair, Mike Dreitzer, has struck a more nuanced tone. Speaking at the Global Gaming Expo (G2E) last week, Dreitzer, a veteran of the gaming technology sector, said he wants to “foster innovation.”

“ We’re happy to have ’em here, but let’s figure out a way to get it in under our roof,” he commented, suggesting a potential path for these products if they submit to state gaming regulation.

However, for now, the official line is one of prohibition. The NGCB warning is a powerful move that forces a clear choice on any Nevada gaming licensee: steer clear of the entire prediction markets space, or risk putting your core Nevada business in jeopardy.