The Nevada Gaming Control Board (NGCB) has cautioned all licensed operators that their gaming licenses could be in jeopardy if they engage with companies involved in offering prediction market contracts.The notice follows recent regulatory actions against firms like KalshiEx, Crypto.com, and Robinhood, reinforcing Nevada’s stance that such event-based contracts qualify as wagers under state law.

In a two-page industry notice titled “Sports Event Contracts are Wagers,” Board Chairman Mike Dreitzer made clear that Nevada regulators view prediction markets as a form of wagering under state law. The advisory specifically mentioned platforms such as KalshiEx LLC, Crypto.com, and Robinhood, emphasizing that offering or partnering in such activities could lead to disciplinary action.

This is the second major warning from the board in less than a week. During the Oct. 8 Control Board meeting, member George Assad praised a recent court ruling against Crypto.com, declaring that prediction market operators are now “on notice that the gig is up.”

The ongoing legal battle between Kalshi and the NGCB stems from a cease-and-desist order issued earlier this year, which demanded the company stop offering contracts resembling sports wagers in Nevada. Kalshi subsequently filed a lawsuit in U.S. District Court in Nevada, with proceedings expected later this year.

Meanwhile, several other states with casino industries have joined the fight against prediction markets, asserting that gaming regulation falls under state jurisdiction, not federal. The markets, however, argue they are compliant under the oversight of the Commodity Futures Trading Commission (CFTC).

The NGCB notice clarified that event contracts tied to sports outcomes, esports competitions, the World Series of Poker, the Oscars, or political elections are not permissible in Nevada. It warned that any operator offering or partnering in such activities—either in-state or in other jurisdictions—could face scrutiny or disciplinary action under the Gaming Control Act.

Furthermore, the policy will extend to future license applicants, whose suitability evaluations may consider any involvement with event-based prediction contracts.

The board’s strong stance signals Nevada’s determination to preserve its regulatory authority and maintain the integrity of the state’s gaming industry amid the rise of new, speculative betting platforms.