Press Article: Legal Battle Rages as Kalshi Disrupts Sports Betting Norms in Nevada
In a surprising turn of events during the NBA Finals, the Indiana Pacers upset the heavily favored Oklahoma City Thunder, resulting in significant losses for Nevada sportsbook operators. The sportsbooks had anticipated profits, as the Thunder were 10-point favorites, but a last-second basket from Pacers’ guard Tyrese Haliburton sealed the game’s fate.
Meanwhile, Kalshi, an online prediction market, continues to stir controversy within the industry. Unlike traditional sportsbooks, Kalshi’s model allows users to buy contracts on game outcomes without setting odds, and it takes a modest 2% transaction fee from customer trades. The exchange’s approach has led to ongoing legal battles with the Nevada Gaming Control Board, which issued a cease and desist order earlier this year. A federal judge has temporarily allowed Kalshi to operate, maintaining its appeal against the regulations that some view as stifling innovation.
Kalshi has reported over $240 million in NBA contracts this year, raising concerns among gaming officials about potential revenue impacts on state-regulated sportsbooks, which generated $482 million in tax revenue in 2024. As the fight continues, industry leaders caution that Kalshi’s success could reshape the landscape of sports gaming in Nevada and beyond.
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