The Nevada Gaming Control Board (NGCB) has formally cautioned its licensed operators against offering or partnering in prediction markets involving contracts on sports, elections, or pop culture events. According to the NGCB, these contracts qualify as “wagering activity” under state law, even if listed under the federal Commodity Futures Trading Commission (CFTC).
This development mirrors similar actions by regulators in Ohio and Michigan earlier this year, signaling a growing consensus among state authorities that prediction markets fall within gambling jurisdiction. Nevada’s notice specifically warns that licensees participating in such markets, even beyond state borders, could face disciplinary action or suitability reviews.
NGCB member George Assad reiterated this stance during the board’s recent hearing, asserting that a “derivative contract is nothing more than a sports wager.” His comments follow a series of legal disputes involving prediction market operators Kalshi, Crypto.com, and Robinhood, all of which have challenged state orders in court with varying outcomes.
However, NGCB Chair Mike Dreitzer struck a more nuanced tone, stating that while innovation is welcome, it must align with Nevada’s stringent regulatory framework. His comments, made during a panel at the Global Gaming Expo (G2E), suggest that the state remains open to exploring compliant models for new betting technologies.
As legal challenges continue, Nevada’s firm stance is expected to shape broader national discussions about the boundaries between gambling regulation and financial innovation potentially determining the next phase of prediction market evolution in the iGaming landscape.
