The Nevada Gaming Control Board has made its stance on sports event contracts very clear, as it issues a firm warning to licensees.
On Wednesday (October 15), the regulator published a notice assigned to all licensees and interested persons and stated that it “is aware that licensees or affiliates have expressed interest in offering so-called “sports event contracts,” either in Nevada or other U.S. jurisdictions.”
These event contracts relate to markets where people are able to bet on the outcome of a specific event, like the winner of a sports championship or an award evening. The offerings are often formatted for putting money on by selecting either ‘yes’ or ‘no’ outcomes.
The board suggests it considers event contracts as constituting wagering activity, with wagering occurring whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere.
Nevada becomes another latest state to warn gambling licensees
They further confirm that sports and other event contracts “may be conducted in Nevada only if the offering entity possesses a nonrestricted gaming license with sports pool approval in Nevada and meets the other requirements for sports wagering including, without limitation, wagering accounts and sports book systems.”
An example of event contracts has been shared, with these being based on the outcome or partial outcome of any sporting or athletic event, or other selected events such as the World Series of Poker, the Oscars, Esports, and political elections.
Nevada isn’t the first state to make their stance known, with the Arizona Department of Gaming having already warned licensed operators against offering prediction markets. It was back in September when operators were advised that offering event contracts or even partnering with such platforms to enable the activity “outside the framework of state gambling laws” could result in serious enforcement.
The Ohio Casino Control Commission has also issued a similar letter, with this having taken place in August.
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