Control Board member Assad to Kalshi: ‘The gig is up’
Summary
Nevada Gaming Control Board member George Assad — a retired judge — publicly criticised companies selling event-based prediction contracts, saying recent court rulings show those products are effectively sports wagers and should fall under state gaming regulation. Assad pointed to a recent U.S. District Court denial of a preliminary injunction for Crypto.com and contrasted that with an earlier ruling favouring Kalshi, noting courts in Maryland and elsewhere have treated the issue differently. Kalshi sued Nevada regulators after a cease-and-desist order; its case is due in Nevada court in December. Assad argued states (and tribal nations) must be able to protect their gaming rules, youth and local policy choices and suggested states may seek to recover profits from firms operating in defiance of state law.
Key Points
- George Assad said derivative-style event contracts are, in practice, sports wagers and should be regulated by Nevada authorities.
- A federal judge denied Crypto.com a preliminary injunction to continue writing sports contracts; Kalshi won a similar temporary order earlier, creating conflicting rulings.
- Kalshi sued the Nevada Control Board after being told to stop offering contracts in the state; its Nevada hearing is scheduled for December.
- Courts in different states (New Jersey, Maryland, Massachusetts, Ohio) have reached mixed decisions, leaving national regulatory authority unsettled.
- Assad urged reclaiming “ill-gotten gains” from companies that profited from offering these contracts in states that prohibit gambling.
Context and relevance
This story sits at the intersection of finance, tech and gambling regulation. Firms like Kalshi and Crypto.com argue federal oversight (CFTC) covers their event contracts as derivatives, while states insist such products are de facto sports betting under state law. The outcome will shape where prediction markets can operate, which regulators prevail, and whether states can block or retroactively penalise these platforms. For Nevada — one of the world’s most important gaming jurisdictions — a definitive ruling could set a template for enforcement and influence tribal, state and industry responses nationwide.
Why should I read this?
Short version: if you care about sports betting, gaming regulation, fintech or whether prediction markets can operate in your state — this matters. Courts are split, Nevada’s regulators are firing back, and December’s hearings could change the game for startups and sportsbooks alike. You’ve been saved some time — here’s the gist so you don’t have to trawl court dockets.
Author style
Punchy: Assad’s comments signal regulators are mobilising and the legal tug-of-war is heating up. If you’re in the industry, this isn’t just commentary — it’s a potential turning point. Read the full detail if your business, legal practice or policy work touches on event contracts or sports wagering.