The Nevada Gaming Control Board (NGCB) is increasing its efforts to address unlicensed prediction markets, as the state’s Attorney General prepares a new civil enforcement action against Kalshi.
According to a status report filed in the U.S. Court of Appeals for the Ninth Circuit on Feb. 10, state defendants revealed their intention to initiate state court proceedings against Kalshi on Feb. 17, 2026.
The move signals a major escalation in Nevada’s attempt to assert jurisdiction over “event contracts” that regulators argue are nothing more than unlicensed sports betting.
“Existential Threat” to Nevada Gaming
In the recent court filing, state regulators did not mince words, describing Kalshi’s continued operation as an “existential threat” to the state’s licensed gaming industry.
“Every day that Kalshi operates in violation of Nevada law causes substantial irreparable harms,” the filing stated. Regulators also cited Kalshi’s marketing, which has touted its products as “100% legal” in all 50 states, as a factor that prompted the state to pursue civil enforcement.
Kalshi, which operates as a Commodity Futures Trading Commission (CFTC)-regulated exchange, has long argued that its markets are financial derivatives preempted by federal law from state-level gaming regulation. However, Nevada officials contend that allowing unlicensed entities to offer sports betting products gives them an unfair advantage over the state’s strictly regulated and taxed operators.
A Pattern of Enforcement
The action against Kalshi is part of a broader crackdown by the Silver State on prediction and crypto-linked platforms. Nevada has successfully targeted several other major players in the space using similar civil enforcement strategies:
- Polymarket: In January 2026, the NGCB filed a civil complaint against the decentralized platform Polymarket, seeking a court order to bar it from offering “unlicensed wagering” in the state.
- Coinbase: Just last week, the board filed a civil action to stop Coinbase from offering event contracts to Nevada residents, describing the activity as illegal wagering.
- Crypto.com and Robinhood: Both companies were previously issued cease-and-desist orders. Following legal challenges, both platforms voluntarily agreed to suspend their sports-related prediction products in Nevada while their respective appeals are pending.
What’s Next?
As the February 17 filing date approaches, the legal landscape for prediction markets remains fractured. Kalshi has faced similar pushback in Massachusetts, Arizona, Illinois, Maryland, Montana, New York, and Ohio, where Kalshi has faced civil action to potentially halt operations.
For now, Nevada remains the primary battleground for the future of prediction markets. If the state is successful in its civil enforcement, it could set a precedent that forces these platforms to either undergo the state’s rigorous (and expensive) gaming licensing process or exit the market entirely.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: https://sportshandle.com/nevada-ag-to-launch-civil-enforcement-action-against-kalshi/