Nevada Gaming Control Board member warns Kalshi, Crypto.com over sports contracts: “The gig is up”

Nevada regulators have signaled a tougher stance toward companies offering prediction market contracts that mirror sports bets, following a series of federal court rulings that questioned their legality.

At Wednesday’s meeting of the Nevada Gaming Control Board, member George Assad said the state would not permit unlicensed platforms such as KalshiEx LLC and Crypto.com to operate products that, in his view, function as sports wagers under another name. Assad, a retired Las Vegas judge, said recent judicial decisions confirm that states retain authority over gambling regulation.

“The recent decision by the judge in Maryland made it crystal clear that the federal government doesn't have exclusive jurisdiction in this field,” Assad said, referencing a ruling by U.S. District Judge Adam Abelson. “States have a right to control, as they have traditionally done, the gambling in their state.”

Assad’s remarks came days after U.S. District Judge Andrew Gordon in Nevada denied Crypto.com’s request for a preliminary injunction that would have allowed it to continue writing sports-linked contracts while its case against the Board proceeded. That decision contrasted with Gordon’s April order granting a temporary reprieve to Kalshi, which is fighting a state cease-and-desist directive issued in March.

Kalshi, which operates under federal oversight from the Commodity Futures Trading Commission, argues that its contracts are derivatives rather than wagers. State regulators disagree, saying the products resemble traditional betting markets.

“A derivative contract, whatever you want to call it, is nothing more than a sports wager,” Assad said. “Every bet made in this town is a contract … Whatever you call it, it’s still a sports bet.”

The dispute has played out across several jurisdictions. Courts in New Jersey, Maryland, and other states have issued conflicting opinions, creating uncertainty for prediction-market operators hoping to expand nationwide. Assad said Nevada’s focus is on consumer protection and preventing minors from developing gambling habits.

“They want to impose their will on Nevada when we want to protect 18- and 19-year-old kids from becoming possibly addicted to gambling,” he said. He also urged state attorneys to recover what he described as “ill-gotten gains” from companies that have profited from such contracts.

Assad’s comments drew notice from industry executives attending the same meeting. MGM Resorts International CEO Bill Hornbuckle, present for a separate licensing hearing, commended him, saying, “Thank you for your clarity on Kalshi. It’s interesting and appreciated.”

Cases involving Kalshi and Crypto.com remain active, with the next Nevada hearing expected in December.

https://www.yogonet.com/international/news/2025/10/09/115745-nevada-gaming-control-board-member-warns-kalshi-cryptocom-over-sports-contracts-the-gig-is-up