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State of Play’s TL;DR
- Nevada’s fight over prediction markets is moving deeper into Washington, with US senators from that state backing an effort to keep the Commodity Futures Trading Commission from using federal funds to challenge state and tribal oversight.
- The move adds another layer to the broader dispute over whether platforms such as Kalshi and Polymarket should be treated more like federally regulated event-contract venues or gambling products subject to state rules.
According to the Las Vegas Sun, US Sens. Jacky Rosen and Catherine Cortez Masto from Nevada have joined a June 24 letter led by Sens. Richard Blumenthal and Jeff Merkley. The letter urged the Senate Appropriations Subcommittee on Financial Services and General Government to bar the Commodity Futures Trading Commission (CFTC) from spending federal money to sue states and tribal nations that regulate online prediction markets.
The senators argued that recent CFTC lawsuits could weaken long-standing state and tribal control over gambling policy. In the letter, they said those cases could “fuel a gambling public health crisis” and interfere with local authority to regulate or restrict gambling.
The letter names eight states – Connecticut, Illinois, Arizona, Wisconsin, New York, Minnesota, Rhode Island, and New Mexico – as targets of CFTC lawsuits tied to state gambling enforcement. It also says tribes in Wisconsin, California, and New Mexico have separately sued online prediction market operators over alleged conflicts with the Indian Gaming Regulatory Act and gaming compacts.
Why Nevada is at the center of the fight
Nevada has been one of the most aggressive states in this debate. The Nevada Gaming Control Board issued cease-and-desist orders to Kalshi and Polymarket in March 2025, then later sued Kalshi in state court.
That case is still active. Kalshi has been operating under court-ordered restrictions since a Carson City judge issued a temporary restraining order last March. The 9th U.S. Circuit Court of Appeals ruled in Nevada’s favor on a key procedural issue, allowing state court enforcement to continue and setting up a possible US Supreme Court fight.
Nevada’s claims go directly to the core policy question. The state alleges Kalshi’s sports betting makes up 90% of its revenue and says the company operates without a gaming license, pays no gaming taxes, has no physical presence in Nevada, and allows underage users to place bets.
Based on reporting by the Las Vegas Sun.
