New York-based KalshiEX LLC, which offers “event-based contracts” that resemble sports bets, is getting a deadline extension from the Nevada Gaming Control Board.
A New York company facing a cease-and-desist demand from the Nevada Gaming Control Board for offering “event-based contracts” that resemble sports bets is seeking more time to address the matter.
The Control Board on Friday posted on X that outside counsel representing KalshiEX LLC, doing business as Kalshi and Kalshi.com, contacted the Control Board about a time extension from the Friday, 5 p.m. deadline the regulator sought in a March 4 letter to the company.
“The company’s counsel requested, and the NGCB did not object to, a limited period of additional time for Kalshi to address the NGCB’s order,” an X post just after 2 p.m., Friday said. “Further details will be provided when available.”
Kalshi, which says it is the first exchange regulated by the federal Commodity Futures Trading Commission, is dedicated to trading on the outcome of future events, usually with yes-or-no propositions.
Its website addresses a number of topics, from inflation and interest rates to unemployment and whether the federal government will shut down.
Among the propositions posted on the Kalshi website Thursday were “Will Trump eliminate the Department of Education this year?” and “The number of tornadoes this month will be higher or lower than 150.”
The Nevada Attorney General’s Office also was alerted to the cease-and-desist order drafted by Control Board Chairman Kirk Hendrick.
The demand letter signed by Hendrick instructed the company to cease all unlawful activity within Nevada by 5 p.m., Friday. Additionally, the letter explained that past unlawful action remains subject to criminal and civil penalties, and any future unlawful activity would be deemed willful violations.
Hendrick cited potential violations of Nevada Revised Statutes as well as Regulations 22 and 26B in the letter, saying the contracts offered by Kalshi resembled a sports wager and the company is not licensed in Nevada to operate a sports pool.
