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The legal dispute between KalshiEx LLC and Nevada gaming regulators has drawn more attention as the Nevada Resort Association (NRA) received court approval to step into the case. The group now has a chance to defend the position of its member casino resorts amid growing debate over whether federal regulation can override state gaming laws.
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On June 2, U.S. District Court Judge Andrew Gordon granted permission for the NRA to intervene in Kalshi’s lawsuit. Kalshi had filed the case on March 28 after the Nevada Gaming Control Board (NGCB) hit the company with a cease-and-desist order earlier in March. The ruling gives the NRA legal standing to argue on behalf of its members, who see Kalshi’s offerings as a threat to their business.
Kalshi started offering prediction contracts on sports events across the country in late 2024. But Nevada regulators pushed back, arguing that these products violated state gaming laws. Casinos licensed in the state must follow rules around bet types, age limits, and regulatory reporting.
Judge Gordon noted the potential impact in his ruling: “If Kalshi prevails in this case, the NRA members likely would be placed at a considerable competitive disadvantage because Kalshi and others would not have to comply with Nevada’s comprehensive gaming laws, including prohibitions on bettors under 21 and types of bets allowed.”
Kalshi claimed the NRA acted too late in its request to join the case. However, the court disagreed. Judge Gordon said the association’s motion was “timely enough,” allowing the NRA to move forward with its defense.
Kalshi insists that since it operates under the authority of the CFTC, it does not need separate approval from state-level gaming bodies. Nevada is just one of seven states with legalized sports betting that has challenged Kalshi’s operations since March.
The pressure on the NGCB increased further on June 3 when North American Derivatives Exchange—known to operate as Crypto.com—filed its own lawsuit. That case names several Nevada officials, including NGCB Chairman Kirk Hendrick and Attorney General Aaron Ford. The lawsuits show a growing clash between federally regulated prediction markets and state-controlled gambling laws.
The NRA warned that letting Kalshi and others offer such markets could trigger sweeping changes in how betting operates in Nevada. It claims those changes could hurt licensed operators who have invested heavily in meeting local requirements.