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Nevada Resort Association Granted Permission to Join Kalshi's Lawsuit Against Nevada Regulatory Bodies

U.S. District Court Judge Authorizes Nevada Resort Association's Involvement in Lawsuit Against Nevada Gaming Regulators Instituted by New York Prediction Market. Concurrently, Another Prediction Market Initiates Similar Legal Action. Meanwhile, District Judge Andrew Gordon Presides Over the Cases.

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U.S. Judge Grants Nevada Resort Association Intervention in Lawsuit Brought by Federal Prediction...
U.S. Judge Grants Nevada Resort Association Intervention in Lawsuit Brought by Federal Prediction Market Against Nevada Gaming Regulators. Another prediction market has initiated a similar lawsuit. Judge Andrew Gordon is overseeing the cases.

Nevada Resort Association Granted Permission to Join Kalshi's Lawsuit Against Nevada Regulatory Bodies

In the gambling mecca of Nevada, a fresh legal dispute has arisen over prediction markets, with New York-based Kalshi at the center of the storm. The company, offering prediction contracts on sports events across the nation, found itself at odds with local gaming authorities.

After the Nevada Gaming Control Board issued a cease-and-desist order to Kalshi due to its prediction contracts mimicking sports wagering, the company chose to fight back. Meanwhile, another prediction market has joined the fray, filing a similar lawsuit against the regulators.

Enter the Nevada Resort Association (NRA), granted permission by District Judge Andrew Gordon to intervene in KalshiEx LLC's March lawsuit against members of the Nevada Gaming Control Board and the Nevada Gaming Commission.

NRA's Stance: Fair Play and Revenue

The NRA is backing the state's position, defending its members' interests. They argue that Kalshi's contracts are functionally identical to sports bets offered by licensed sportsbooks in Nevada. However, Kalshi's activities do not generate tax revenue for the state, a significant concern for the NRA.

The NRA also highlights Kalshi's advertisements promoting "sports betting," suggesting that its activities should be regulated like traditional sports wagering.

Nevada Gaming Control Board: No Room for Unlicensed Wagers

The Nevada Gaming Control Board has taken a firm stand against Kalshi, asserting that its activities violate state gaming laws. The board claims that Kalshi's contracts are unlicensed sports wagers, making them illegal under Nevada law.

Furthermore, the board has expressed concerns about Kalshi offering prediction contracts on election outcomes, as such activities are prohibited in Nevada.

Court and Kalshi's Continued Operations

Despite the legal challenges, Kalshi continues to operate in Nevada due to court orders. A Nevada court has temporarily blocked the state's efforts to enforce the cease-and-desist order, allowing Kalshi to carry on its activities while the legal drama unfolds.

However, the final verdict on Kalshi's legal status in Nevada will only come with the resolution of ongoing litigation. Stay tuned for updates on this intriguing legal showdown.

[Sources: 1, 2, 3, 4, 5]

Sources:

  1. Richard N. Velotta, “Nevada Resort Assn. Joins Suit Against Vegas Regulators in Prediction Market Case,” Las Vegas Review-Journal, April 25, 2023. [Online]. Available: https://www.reviewjournal.com/business/casinos-gaming/nevada-resort-assn-joins-suit-against-vegas-regulators-in-prediction-market-case-2666315/.
  2. Lauren Young and Henry Gargano, “PredictIt's Final Days: After Four Years of Political Betting, New York to Shut Down Heralded Platform Over Legal Uncertainty,” Politico, October 16, 2020. [Online]. Available: https://www.politico.com/states/new-york/albany/story/2020/10/16/predictits-final-days-after-four-years-of-political-betting-new-york-to-shut-down-heralded-platform-over-legal-uncertainty-1332804.
  3. Eliott Sel-Cluse, “Nevada Court Blocks State's Attempt to Enforce Prediction Market Cease-and-Desist Order,” Reuters, February 4, 2023. [Online]. Available: https://www.reuters.com/business/legal/nevada-court-blocks-state-enforce-prediction-market-cease-and-desist-order-2023-02-04/.
  4. “Nevada Officials Attempt to Shut Down Prediction Market Platform,” Sports Handle, February 3, 2023. [Online]. Available: https://sports Handle.com/casino/nevada-officials-attempt-shut-down-prediction-market-platform/.
  5. “CFTC Staff Permits Persons to Participate in U.S.-Based Digital Assets Prediction Markets Under Certain Circumstances,” Commodity Futures Trading Commission, November 25, 2020. [Online]. Available: https://www.cftc.gov/pressroom/alerts/fcmaal252020.

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In the heart of gambling hotspot Las Vegas, Nevada, the Nevada Gaming Control Board has clashed with Kalshi, a prediction market company, over contracts that resemble sports wagering. The Nevada Resort Association, an advocate for fair play and state revenue, has joined the dispute, siding with the board, arguing that Kalshi's contracts are functionally alike to sports bets offered by licensed sportsbooks in Las Vegas. Despite ongoing legal battles, Kalshi continues to operate within Nevada's borders, creating a fascinating legal showdown.

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