The last few months for prediction business Kalshi have seen a whirlwind of activity with uncertainty, and on Tuesday the operator took another hit.

The Nevada Gaming Control Board (NGCB) provided a cease-and-desist order to Kalshi to end their operations in the Silver State and exit the market on Friday, March 14 by 5 p.m., mentioning offenses of state gaming laws and for taking part in illegal gaming activity such as "event-based agreements" on sporting occasions and election outcomes, all of which are illegal in the state unless authorized as a licensed video gaming operator by the Nevada Gaming Commission (NGC).

Any non-compliance to the order could result in criminal or civil penalties.

"Every sports swimming pool in Nevada should go through an extensive examination prior to licensing, need to follow rigorous regulation when certified, and should pay all appropriate taxes and fees," stated NGCB Chairman Kirk Hendrick in the letter.

"Any illegal attempts to prevent Nevada's right to regulate video gaming activity within its borders will be fulfilled with the full blast of criminal and civil charges."

Prediction markets such as Kalshi, Polymarket, Augur and PredictIt differ from conventional sportsbooks in that they are managed at the federal level by the Commodity Futures Trading Commission (CFTC), allowing them to run across all 50 states.

The CFTC is an independent federal regulative agency entrusted with overseeing the U.S. derivatives markets. This regulative distinction has created significant with state gaming authorities, specifically in Nevada, which enforces strict oversight on gambling-related activities.

Kalshi took off onto the American landscape with their real-time markets on last November's Presidential election.

"While we're dissatisfied with the Commission's evaluation, Kalshi has actually always held the utmost respect for regulators and the regulative process. We've been a federally managed exchange for over four years and a federally regulated clearinghouse for about 6 months. We are proud to have actually led the way for forecast markets to thrive in the U.S. We eagerly anticipate a speedy resolution to this matter and to guaranteeing that Americans continue to have access to safe, regulated, and transparent forecast markets," said a main Kalshi representative on the matter.

Titus Letter

All of this comes on the heels of a letter sent by Nevada Congresswoman Dina Titus (D) in late February.

Titus, who has represented Nevada's First District because 2013, announced in a tweet back on Feb. 24 that she had sent a letter due to issues about legislating prediction markets on sports agreements, arguing it could undermine state-regulated sports wagering, consumer defenses, and tax earnings adding that it is a backdoor method to permit sports wagering in all 50 states.

The CFTC will be holding a public roundtable later on this month to discuss regulating prediction markets, including sports-related agreements. The commission had requested public input on the matter, likewise referred to as Titus' letter, by Feb.
.