Nevada Resort Association to Join Lawsuit Against Kalshi as Dismissal Rejected
The Nevada Resort Association (NRA) has received approval to intervene in an ongoing federal lawsuit filed by Kalshi against Nevada gaming authorities. The association seeks to defend the interests of its members, which include more than 70 casino resorts throughout the state, in response to Kalshi's legal challenge against Nevada's regulatory stance on prediction markets related to sports outcomes.
LISTEN TO THIS ARTICLE:Kalshi filed its lawsuit on March 28, 2025, against members of the Nevada Gaming Control Board (NGCB), the Nevada Gaming Commission (NGC), and Attorney General Aaron Ford, all in their official capacities. The firm contends that its contracts for event-based predictions fall under the jurisdiction of federal commodities law, specifically the Commodity Exchange Act (CEA), and are thus not subject to Nevada's gaming regulations.
Related: Nevada Casinos Seeks Participation in Kalshi Betting LawsuitKalshi argues that the CEA preempts state law in this matter, which would exempt the company from complying with the stringent licensing and operational standards imposed on Nevada sportsbooks.
Judge Gordon's order allowing the NRA to intervene emphasized that the resort industry association and its member properties could face a significant competitive disadvantage if Kalshi is permitted to operate without adhering to Nevada's gaming laws. The court recognized the possibility that prediction markets like Kalshi's, which are not subject to local gaming restrictions such as prohibitions on bets from individuals under 21 or limitations on bet types, could undermine the integrity and profitability of the state's regulated sports wagering industry.
In its motion, the NRA highlighted the economic scale of Nevada's sports betting sector. It noted that, in 2024, more than $7.8 billion in sports wagers were processed by licensed operators.
The association warned that the entry of unregulated or differently regulated entities offering similar betting opportunities could result in profound disruptions to the state's current gambling framework. The organization characterized the potential consequences as seismic in scope, given the market share and operational stability of the resort-based gaming sector.
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Legal Battle to Continue Following Dismissal Rejection
Kalshi began offering its prediction-based futures contracts nationwide in late 2024. These contracts, which enable users to bet on the outcomes of specific events—including sports contests—triggered concern among Nevada regulators, who issued a cease-and-desist order to the company. The NGCB deemed the contracts to closely resemble traditional sports wagers, which Kalshi is not licensed to offer within the state.
In a separate but related decision, Judge Gordon denied a motion to dismiss Kalshi's lawsuit filed by the defendants. On June 4, the court rejected multiple arguments, including Eleventh Amendment immunity, failure to properly identify the State of Nevada as a party, inadequate service of legal documents, and a claim that Kalshi did not sufficiently state a cause of action.
The ruling allows the case to proceed, maintaining the preliminary injunction already in place, which currently prevents Nevada from taking enforcement action against Kalshi during litigation.
Kalshi's legal stance relies on its position that its event contracts are a form of federally regulated commodity, not gambling. However, Nevada officials assert that the contracts fall under the definition of sports wagering, requiring state oversight. The involvement of the NRA could intensify the legal and regulatory conflict, with the influential gaming body now formally participating in the defense of Nevada's established gambling laws and industry practices.
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