Nevada Backs Maryland in Legal Challenge Against Sports Prediction Markets
Kalshi remains at the centre of the controversy, particularly in Maryland, where the platform was denied a request for a temporary injunction following a cease-and-desist order issued by the state’s gaming regulator.
The Nevada Attorney General’s Office has filed an amicus brief backing Maryland in its legal challenge against prediction markets offering sports event contracts, adding further momentum to a widening regulatory dispute across the United States.
Kalshi remains at the centre of the controversy, particularly in Maryland, where the platform was denied a request for a temporary injunction following a cease-and-desist order issued by the state’s gaming regulator. The case is now being considered by the Fourth Circuit Court of Appeals after Kalshi lodged an appeal.
State regulators, including Maryland Lottery and Gaming, argue that prediction market platforms are operating beyond the scope of state-regulated sports betting frameworks. In contrast, Kalshi and similar operators maintain that oversight by the Commodity Futures Trading Commission (CFTC) grants them the authority to offer sports-related contracts nationwide.
Nevada Attorney General Aaron Ford has now joined the case in support of Maryland through an amicus brief co-sponsored by Ohio Attorney General Dave Yost and supported by a bipartisan coalition of 38 states.
In a statement, Ford’s office emphasised Nevada’s long-standing role in regulated sports wagering, arguing that states — rather than federal financial regulators — possess decades of experience in consumer protection, safeguarding sporting integrity and addressing risks such as underage gambling.
Ford added that the coalition aims to reaffirm that Congress has not removed states’ authority to regulate sports wagering by implication, warning that permitting unregulated sports betting on a national scale would fundamentally disrupt the existing regulatory balance without explicit legislative approval.
The legal action reflects a broader enforcement trend at state level. Regulators in multiple jurisdictions have either moved to block prediction markets from offering sports event contracts or cautioned licensed operators against engaging with these products.
Earlier this month, Connecticut’s gambling regulator issued cease-and-desist notices to Kalshi, Robinhood and Crypto.com. In October, the Michigan Gaming Control Board warned licensees that offering sports event contracts could carry consequences for their regulatory standing.
These developments preceded the formal launch of prediction market platforms by DraftKings and FanDuel in December, further intensifying the debate over regulatory oversight.
Meanwhile, Kalshi, alongside Coinbase, Crypto.com, Robinhood and Underdog, has formed the Coalition for Prediction Markets (CPM) as enforcement scrutiny continues to grow across multiple states.
