Kalshi stated, “We disagree with those restrictions, but as a law-abiding company, we’re following them,” and expressed confidence in their legal position. The Nevada Gaming Control Board (NGCB) considers such event contracts a form of wagering, and with Kalshi temporarily halted, Nevada joins other platforms like Polymarket, Robinhood, Coinbase, and Crypto.com in being restricted.

Kalshi reportedly used user registration data to enforce these restrictions, barring Nevada residents but possibly allowing out-of-state visitors in Nevada to trade. Some categories blurred boundaries, with users able to trade on topics like Saturday Night Live or political mentions, despite restrictions on sports and entertainment.

Industry leaders support Nevada’s stance. The American Gaming Association (AGA) praised the enforcement, emphasizing the importance of protecting consumers and the integrity of regulated markets. The move comes amid declining sports betting revenue and sluggish tourism, with Nevada’s Super Bowl handle dropping to a decade.

Read also: Panama Implements New Measures to Tackle Gambling Addiction

Legislation is heating up, with bills like the Prediction Markets Are Gambling Act, introduced by Senators Schiff and Curtis, aiming to ban certain event contracts. Kalshi’s CEO criticized such efforts, arguing they push prediction markets offshore. Other bills from lawmakers seek to clarify existing laws, which already prohibit unlawful betting activities, though recent legal setbacks suggest the industry’s position may be shifting. Kalshi Nevada Markets

The post Kalshi Takes Initial State Action by Limiting Nevada Markets After Court Decision appeared first on iGaming Amerika.

Arizona Attorney General Kris Mayes stated: “Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law.” This marks the first criminal case of its kind at the state level targeting a prediction market. The criminal filing grants Arizona authorities the power to pursue fines, seize assets, and issue court orders to halt Kalshi’s operations within the state. It also broadens investigators’ authority to scrutinize the company’s records and personnel.

The move follows Kalshi’s recent federal lawsuit, which argues that the Commodity Exchange Act and the regulatory authority of the Commodity Futures Trading Commission (CFTC) take precedence over state gambling regulations. Founded in 2021, Kalshi has garnered attention for offering contracts on a wide range of topics, including sports, political events, and economic indicators. Its innovative business model has attracted regulatory scrutiny across various states, with cease-and-desist orders issued in Ohio, Nevada, Maryland, and Massachusetts. Courts in these states have issued differing rulings on whether such contracts qualify as illegal wagers or are protected under federal financial regulation.

While the CFTC has historically enforced regulations on designated contract markets and claims to hold regulatory primacy over event-based contracts, ambiguity persists regarding the jurisdiction of prediction markets. Recently, a federal judge weighed in on the matter, with US District Judge Michael T. Liburdi denying Kalshi’s request for a temporary restraining order to stop Arizona’s criminal proceedings. The judge ordered Kalshi to justify why the court should not abstain from involvement, citing the Younger abstention doctrine, which would mean the case proceeds exclusively in state court. This decision could influence how similar cases are handled across the country.

Read also: Argentine Judge Mandates Nationwide Ban on Polymarket and App Store Removals

Judicial opinions remain divided. In February, a federal judge in Tennessee upheld Kalshi’s argument that the CFTC’s authority preempts state laws, while courts in Ohio and other jurisdictions have dismissed similar claims, highlighting ongoing legal uncertainty surrounding prediction markets. Arizona Criminal Charges Kalshi

The post Arizona’s Top Prosecutor Brings 20 Criminal Charges Against Kalshi appeared first on iGaming Amerika.

This legal action follows an investigation launched by a specialized gambling enforcement agency, which characterized Polymarket as a “covert online betting system” operating without proper authorization. The Buenos Aires Specialised Gambling Prosecutor’s Office, established recently to oversee such matters, responded to a complaint filed by the Buenos Aires City Lottery, which had identified Polymarket’s operations within the country without a valid license.

The investigation uncovered that Polymarket allowed users to create accounts rapidly, without requiring identity verification or age checks. Furthermore, it was found that the platform does not hold any licenses registered with the Association of State Lotteries of Argentina. These breaches of regulatory standards prompted the court to intervene decisively, potentially paving the way for broader enforcement actions across Argentina.

Polymarket has not yet issued a public statement regarding the court’s decision. The regulatory landscape for crypto prediction markets has become increasingly stringent worldwide, especially following high-profile enforcement measures in Europe. In Portugal, local authorities declared Polymarket unauthorized to offer betting services. The Serviço de Regulação e Inspeção de Jogos (SRIJ) emphasized that Portuguese law prohibits betting operations on political events, whether domestic or international. This crackdown followed reports of a significant €103 million surge in election-related wagers placed on the platform. The SRIJ issued a formal directive to cease such activities, deeming them unauthorised.

Similarly, the platform faced penalties from the Dutch gambling regulator, Kansspelautoriteit (KSA), which found that Polymarket was operating within the Netherlands without a valid gambling license. In addition, prediction markets are under increasing scrutiny in Brazil, especially following the announcement by Kalshi to enter the market, its first outside the United States. The Brazilian regulatory authority, the Secretariat of Prizes and Bets, responded swiftly, stating:

Read also: BGaming Partners With Centurion Association for Charity and Social Initiatives in Brazil

“The prediction market is part of the Secretariat’s internal analysis agenda, with preliminary studies under way. It should be noted that, at present, there are no Brazilian companies formally authorised by the SPA to operate in this segment.”

These developments illustrate a growing international trend towards tighter regulation and enforcement concerning prediction markets and online betting platforms. Argentine Ban Polymarket

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