Published on: October 16, 2025, at 12:56h.
Updated on: October 16, 2025, at 12:56h.
- The state of Nevada cautions licensed gaming establishments about sports event contracts.
- The NGCB views these prediction market activities as a form of sports gambling.
Officials from Nevada are advising the over 300 licensed casinos and gaming businesses in the state that collaborating with companies involved in prediction markets offering contracts tied to sports outcomes poses a significant risk to their gaming license status.
Recently, the Nevada Gaming Control Board (NGCB) released a notification to licensees, clarifying that the agency categorizes “sports event contracts” as forms of sports gambling. Companies like Kalshi, Polymarket, and Robinhood, which assert compliance with federal regulations via the Commodity Futures Trading Commission (CFTC), should be disregarded by all Nevada licensees.
Should a Nevada licensee engage in providing Sports and Other Event Contracts within the state or collaborate with organizations offering similar contracts, such actions will be factored into the assessment of their ongoing suitability for maintaining a gaming license in Nevada,” the NGCB notice stated.
Kalshi, Polymarket, and Robinhood possess Designated Contract Market (DCM) and Futures Commission Merchant (FCM) licenses from the CFTC.
The NGCB regulates and upholds the Nevada Gaming Control Act, providing reports and policy suggestions to the Nevada Gaming Commission.
Potential Ripple Effects?
In addition to avoiding partnerships with prediction markets dealing in sports event contracts in Nevada, the NGCB informed its licensees that collaborations with such entities in other states could have consequences.
“Licensees who offer Sports and Other Event Contracts in different states without adhering to those states’ regulations, partner with entities partaking in such activities, or violate tribal rights may face disciplinary actions under the Gaming Control Act,” the NGCB emphasized.
Decisions made by the NGCB, regarded as the benchmark for commercial gaming regulation in the United States, frequently influence other state gaming authorities. Hence, Nevada’s advisory to its gaming licensees could trigger a broader impact.
Several sports betting companies are contemplating investments, partnerships, or acquisitions in the burgeoning prediction market sector.
For instance, in August, FanDuel announced its collaboration with CME Group to create yes/no event contracts based on financial data and economic events, although CME does not provide contracts related to sports and FanDuel operates outside Nevada.
Sports Contracts Considered Illegal Betting
In its notice, Nevada gaming authorities concluded that prediction markets trading in sports contracts are effectively participating in illegal gambling as per state legislation. Involvement in, or collaboration with, illegal gambling constitutes a serious breach of the suitability standards for licensees or applicants.
The Board urges licensees to maintain awareness of their responsibility for suitability and adherence to all relevant laws across all jurisdictions in which they operate,” the NGCB notice remarked. “Such behavior will be taken into account during the suitability evaluation of new applications submitted in accordance with the Gaming Control Act.”