NGCB Launches Civil Action Against Kalshi Over Alleged Unlicensed Wagering

The Nevada Gaming Control Board has filed a civil enforcement action against Kalshi in Carson City District Court. The regulator is seeking a declaration and injunction to prevent the offering of “unlicensed wagering in violation of Nevada law.” 

According to the NGCB’s filing, “Kalshi is a financial services company that operates a derivatives exchange and prediction market, which offers products referred to as event contracts for sale. These products are offered for sale on Kalshi’s website and mobile app, and are made available to people in Nevada.” 

Regulators argue that these products fall within Nevada’s statutory definition of wagering.

“The Board considers offering sports event contracts, or certain other event contracts, to constitute wagering activity under NRS 463.0193 and 463.01962 and, therefore, entities offering such event contracts must be licensed.”

Attorney General Cites Expansion During Stay Motion

The Nevada Attorney General’s Office had announced plans to pursue civil enforcement on 11 February. This  followed Kalshi’s request for a stay motion in December 2025. Though state lawyers initially agreed to hold off, Kalshi’s conduct has been questionable within this period. 

“Since filing its stay motion, Kalshi has continued to dramatically expand its business, rather than attempting to maintain any kind of status quo. Kalshi has massively increased its trading volumes, and has aggressively, and wrongly, marketed its sports bets as ‘100% legal’ in ‘all 50 States,’” the letter said. 

The state views these actions as inconsistent with a pause in proceedings.

State Argues Ongoing Harm to Public and Industry

The filing references earlier court findings about the potential impact of Kalshi’s operations. “As the district court found, every day that Kalshi operates in violation of Nevada law causes ‘substantial irreparable harms to State Defendants, the State of Nevada, the gaming industry in this state and the public interest.’ Kalshi’s continued operation harms the public because Kalshi offers sports betting but does not comply with ‘the same rigorous regulations and oversight as the licensed entities in this state.’”

The Attorney General’s Office maintains that the operator’s “own actions now compel state defendants to take action to stop Kalshi’s unlawful behavior.” Therefore, enforcement action is necessary to preserve Nevada’s licensing framework.

Chairman Vows Continued Enforcement Efforts

NGCB Chairman Mike Dreitzer addressed the February 17 filing in a public statement. “The Board continues to vigorously fulfill its obligation to safeguard Nevada residents and gaming patrons, and uphold the integrity of a thriving gaming industry.”

The NGCB and the Attorney General’s Office pursued similar actions against Polymarket and Coinbase earlier in 2026. In both cases, the operators were issued 14-day temporary restraining orders by the courts.