Kalshi CEO vows to “keep marching” despite Nevada regulator’s cease-and-desist order
Tarek Mansour expresses his disappointment at the NGCB’s decision, as he says company won’t be deterred until prediction markets reach “full potential”
Kalshi CEO Tarek Mansour has said the company will “keep paving the way” for regulated prediction markets in the US, despite being hit with a cease-and-desist order from the Nevada Gaming Control Board (NGCB).
The Silver State regulator became the first authority to publicly push back against the exchange market, which has seen a notable rise in popularity since the 2024 presidential election and more recently its offering of sports event contracts.
The letter from the NGCB, signed by chair Kirk Hendrick, informed Kalshi that offering contracts on the outcome of sports games and political elections is “unlawful in Nevada, unless and until approved as licensed gaming by the Nevada Gaming Commission.”
It also noted several state regulations that Kalshi is in violation of, reminding the company it could be subject to criminal charges.
Kalshi’s first sports event contracts came in the buildup to last month’s Super Bowl LIX, though it has since expanded into other sports.
The contracts are accessible to users over the age of 18 in all 50 US states, including those jurisdictions without legalized sports betting.
Crypto.com was the first exchange to roll out the product prior to Christmas, before Kalshi and retail brokerage firm Robinhood followed suit, though the latter pulled its version of the product after just 24 hours at the request of the Commodity Futures Trading Commission (CFTC).
In response, Mansour took to LinkedIn to express his disappointment at the NGCB’s decision and detail the hurdles faced by both himself and co-founder Luana Lopes Lara when starting the company.
“From day one, we defined a core principle: Do things the right way. We knew that regulation and trust had to be the foundation to build something enduring,” Mansour wrote.
“That’s why we spent three grueling years getting regulated by the CFTC before we launched a single product.”
Mansour continued, outlining Kalshi’s legal battle with the CFTC regarding the right to list election event contracts.
It was a dispute won by the exchange, which presented its case to the Court of Appeals in September 2024, with Judge Jia Cobb of the US District Court for the District of Columbia ruling in its favor.
The CEO added: “We stayed true to our principles: instead of going around regulations or going offshore, we decided to ask federal courts to weigh in. The courts sided with us because we were right on the law. We freed prediction markets, took them mainstream, and won big.
“After the election, we were convinced that the value of prediction markets was now obvious to everyone, and that the regulatory battle for legal prediction markets was over… We were right, except for the everyone part.
“While we are disappointed to see the letter from Nevada, Kalshi will stay committed to our approach and keep paving the way for regulated prediction markets to thrive in the US.
“To the prediction markets community: last year proved how important our mission is. We have fought hard to get to this point, but the job’s not finished and the work will continue till prediction markets achieve their full potential. We keep marching.”
Mansour’s sentiment echoed that of a Kalshi spokesperson’s statement, issued in response to the NGCB’s cease-and-desist letter, which made clear that the company has been federally regulated for four years.
The statement added: “We are proud to have paved the way for prediction markets to thrive in the US.
“We look forward to a swift resolution to this matter and to ensuring that Americans continue to have access to safe, regulated, and transparent prediction markets.”