Kalshi Setback in MA Emboldens Nevada, Reinvigorating Efforts Against Polymarket

Kalshi’s recent setbacks in Massachusetts have emboldened Nevada authorities to double down on their pushback against prediction markets operators Kalshi and Polymarket. This comes amid a broader pushback against the sector and ongoing discourse about the legality of event contracts.

Kalshi Suffered a Huge Setback in Massachusetts

The prediction markets sector has quickly become the hot topic of the gaming sector. While many have welcomed the novelty, traditional betting industry stakeholders, tribal authorities, and state regulators have been unamused.

Nevada, in particular, has been hellbent on eliminating all unauthorized betting alternatives in order to protect its core gaming industry. As a result, the Silver State has cemented itself as one of the most important theaters in the war on prediction markets.

While there has been some back-and-forth, a recent breakthrough in Massachusetts has heated up the action. The recent ruling in the Bay State prevented Kalshi from offering its products in the state, at least for now.

Nevada has now cited this ruling in its arguments against prediction markets as its battle against Polymarket continues.

Nevada Strikes Harder  

In response to the recent ruling in Massachusetts, the Nevada Attorney General’s Office has submitted it as supplemental authority in a recent Kalshi appeal. On behalf of the Nevada Gaming Control Board, the office argued that the ruling is an argument against Kalshi’s request for an injunction. Authorities also noted that this decision contradicts Kalshi’s claims that federal commodities law preempts state gaming regulation.

Nevada is also hoping to leverage the momentum in its fight against Polymarket, another major prediction markets operator. State authorities hope to secure a temporary restraining order and a preliminary injunction to prevent the platform from offering its products in Nevada.

Nevada regulators reiterated that they consider prediction markets to be an unlicensed form of betting product.

The latest motion reflects Nevada’s unwavering resolve to prevent what it considers to be unlicensed gaming from taking place in the state and undermining the vital gaming industry in Las Vegas and beyond.

More than that, the recent Massachusetts ruling could also turn out to be an even bigger setback as other states might also cite it in their own battles against the encroaching prediction market sector.

In the meantime, the new CFTC chair just discussed the future of financial markets, confirming the importance of modernizing the ruleset governing such products. However, he did not specify whether he plans to restrain the prediction markets sector.