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Nevada regulators have filed a motion requesting key documents from prediction market operator Kalshi as part of an ongoing review into event-based trading platforms and their compliance with state gaming laws.
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The new filing seeks to obtain Kalshi correspondence with the CFTC to understand how the federally approved event-trading marketplace operates within Nevada regulations. Officials believe the documents could clarify how Kalshi’s contracts fit under state gaming definitions.
Nevada authorities are evaluating several event-based trading platforms, including Kalshi and Crypto.com, as they determine whether these services qualify as gaming or regulated financial products.
Earlier in the year, Judge Andrew Gordon denied an injunction from Crypto.com to continue offering sports prediction contracts, citing differences between its products and those operated by Kalshi. That decision highlighted how regulators distinguish between trading markets regulated under federal law and those governed by gaming rules.
Kalshi received a cease-and-desist order in March but continues operating under federal authorization while defending its model in ongoing legal discussions.
According to the court filing, the motion focuses on four key areas: Kalshi compliance with state regulations, the structure of its event contracts, reporting transparency, and the company’s adherence to the CFTC Core Principles. Regulators claim Kalshi’s previous responses did not fully address these topics, prompting a new request for disclosure.
Legal analyst Daniel Wallach reported that Kalshi has not yet provided copies of certain communications with the CFTC that could shed light on its compliance obligations. The absence of these records has drawn continued attention from Nevada regulators as they weigh how federal and state frameworks interact.
The CFTC has recognized Kalshi as a designated contract market, giving it federal authority to list and clear event contracts. However, state-level agencies such as the Nevada Gaming Control Board still oversee activities considered to be wagering. The overlap between these systems has created uncertainty for platforms offering prediction-based products.
If Nevada’s motion succeeds, the disclosures could help define how Kalshi’s federally approved operations fit within the boundaries of state gaming oversight. The outcome may also influence how other states approach event-trading markets going forward.
Despite the ongoing regulatory scrutiny, Kalshi continues expanding globally. The platform now serves users in more than 140 countries and has reached weekly trading volumes exceeding $1 billion. Investors remain confident in its model.
Today, Kalshi announced a $300 million funding round led by Sequoia Capital and Andreessen Horowitz, raising its valuation to $5 billion and reinforcing its position as a major force in the event-trading sector.