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Fact-checked by Angel Hristov
Nevada Bill Seeking to Seize Illegal Gambling Proceeds Passes Senate
The bill’s objective is to make gambling unsustainable for unlicensed operators and introduce harsher penalties for violators

Lawmakers in Nevada have advanced a new bill that would reinforce the state’s regulations against unlicensed gambling. Per the proposed measure, authorities will be able to request illegal operators to relinquish their profits to the state.
Nevada Seeks to Make Illegal Gambling Unsustainable
Senate Bill 256, which was sponsored by Senator Rochelle Nguyen, proposes a number of major changes to the state’s gambling laws. Designed to prevent illegal gambling, these changes would provide authorities with additional powers to crack down on unlicensed operators.
Among other things, SB 256 would require anyone convicted of participation in illegal gambling to forfeit all gains and profits from the activity. Per this ruling, confiscated money would be channeled toward the Nevada State General Fund.
The bill’s objective is to make gambling unsustainable for unlicensed operators and return the money they’ve taken to the state.
SB 256 Wants Harsher Penalties
In addition to seeking to allow the seizure of the proceeds of illegal gambling, the bill also seeks to increase the penalties faced by operators of gambling based outside of Nevada. For context, illegal gambling operators in Nevada are considered to be committing a Class C felony.
The current law is much more lenient toward out-of-state gambling entities, which face a maximum penalty of up to six months in jail and a fine of up to $1,000. Proponents of SB 256 believe that these penalties are not severe enough and should be at least doubled.
SB 256 successfully passed the Senate and is now heading to the House of Representatives.
Nevada Pushes Back Against Sweepstakes & Prediction Markets
It is still unclear whether the new bill will affect sweepstakes operators and prediction markets. Nevada has been bullish on weeding out both of these rapidly growing verticals, claiming that their products constitute illegal gaming. Industry stakeholders in Nevada and beyond have argued that sweepstakes, which are unregulated, and prediction markets, which are regulated by the Commodity Futures Trading Commission, have an unfair advantage over traditional gambling operators.
Recently, the Nevada Gaming Control Board sent a cease-and-desist order to Kalshi, one of the largest prediction markets in America. However, Kalshi, which claims that its products fall under the jurisdiction of the Commodity Futures Trading Commission, struck back, taking Nevada to court and scoring a legal win.
Kalshi’s founder Tarek Mansour recently commented on the matter, emphasizing that his company remains unfazed by the cease-and-desist orders it has received in multiple states. He was firm that Kalshi answers only to the CFTC and that the company will halt offering or change its products only if the CFTC requires it.
In the meantime, Maryland became the sixth state to order Kalshi to cease its operations in the state.
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Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at Gambling News is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.
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