Prediction market Kalshi filed a lawsuit against the Nevada Gaming Control Board and the New Jersey Division of Gaming Enforcement after both state regulators sent cease and desist orders for the firm to pause all sports-related contracts in the states.

Kalshi’s legal team argued that the contracts fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and, therefore, cannot be regulated by state-level authorities.

The team also contends that the cease and desist orders fail to recognize that Kalshi’s event contracts are two-sided markets that trade as swaps as opposed to the sports-betting book model where the house controls the market. Kalshi co-founder Tarek Mansour said:

“Prediction markets are a critical innovation of the 21st century, and like all innovations, they are initially misunderstood. We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law.”

Additionally, the Nevada Gaming Control Board sent Kalshi a cease and desist order for its election contracts, which a United States judge ruled were legal in September 2024 — allowing the contracts to trade freely in the US.

Massachusetts subpoenas Robinhood over sports prediction markets

CFTC commits to ending regulation by enforcement

On Feb. 4, acting CFTC director Caroline Pham issued a notice signaling a major regulatory pivot at the CFTC and ending regulation through enforcement actions, choosing to focus on fraud instead.

“The CFTC is strengthening its enforcement program to focus on victims of fraud, as well as remaining vigilant for other violations of law,” Pham said

This major change at the CFTC was welcomed by industry firms as a breath of fresh air following a torrent of regulatory lawsuits and enforcement actions under the Biden administration.

The regulator also initiated a probe into Super Bowl event contracts offered by Kalshi and Crypto.Com on the same day the notice was sent out.

The goal of the CFTC’s probe was to ensure that the Super Bowl event contracts complied with existing derivatives laws in the US, and the CFTC ultimately took no action to ban the contracts.

Magazine: Train AI agents to make better predictions… for token rewards

Nevadans are learning that unlike Las Vegas, what happens in Washington (and Mar-a-Lago) doesn’t stay in Washington.

After more than two months into the Trump administration, we’re starting to see the impacts of the funding cuts, cancellations and rescissions pursued by Elon Musk and the Department of Government Efficiency (DOGE).

As my colleagues Tabitha Mueller and Eric Neugeboren reported, nearly 50 state health employees were let go after the sudden cancellation of pandemic-era federal grants. 

Between cuts to two programs, Nevada food banks are facing 10 percent budget holes and seeing deliveries cancelled. 

And though some fired federal employees (including at Great Basin National Park) are back to work thanks to a judicial order, the massive layoffs expected across federal agencies means there’s more to come.

The Walker River Paiute Tribe is one group in Nevada that’s been left in limbo by the torrent of executive action. A $20 million grant to the tribe for climate resiliency projects, including much-needed upgrades to the reservation’s water infrastructure, has been suspended by the Environmental Protection Agency. 

Ostensibly ensnared in the Trump administration’s crusade against diversity, equity and inclusion — the grant program has “environmental justice” in the name — the tribe and its partners are trying to leverage relationships in Congress, including with Rep. Mark Amodei (R-NV), to get the funding reinstated. 

The federal government’s war on DEI goes beyond academia or corporate culture — and things such as the Walker River Paiute Tribe’s new water storage tank hang in the balance. Read more here.

Around the Capitol

🏛️Effectiveness ratings are in — Three Nevadans landed in the top 10 for their caucuses in the Center for Effective Lawmaking’s biannual scorecard, which attempts to quantify how effective members of Congress based on how many bills they get passed, and how substantive those bills are.

Rep. Dina Titus (D-NV) finished third among all House Democrats. Sen. Catherine Cortez Masto (D-NV) was seventh among Senate Democrats and Sen. Jacky Rosen (D-NV) was eighth. Titus’ influence was greatest on international affairs policy, Cortez Masto’s on Native Americans and Rosen’s on education.

📵Rosen sends a Signal — Rosen led a group of 15 Senate Democrats in a Thursday letter calling for hearings into top Trump administration figures’ handling of classified information after a bombshell story in The Atlantic revealed that Cabinet officials were discussing specific war plans in a Signal group chat that inadvertently included a journalist.

Rosen’s letter goes right to the top, calling for Vice President JD Vance, Defense Secretary Pete Hegseth and National Security Advisor Michael Waltz, among others in the group chat, to testify.

💊Cortez Masto, Horsford go after drugmakers   — Cortez Masto and Rep. Steven Horsford (D-NV) introduced bicameral legislation Thursday to expand a prescription drug policy created by the Inflation Reduction Act (IRA). 

The IRA included a provision that fines pharmaceutical companies for increasing prices at a rate faster than inflation for prescription drugs covered by Medicare. The Nevadans’ bill would expand that to private insurance.

What I’m Reading

Las Vegas Review-Journal: Sheriff rejects requests to use Las Vegas officers for immigration enforcement

Sheriff Kevin McMahill has been quite consistent about this — but it hasn’t stopped the feds from asking.

The Nevada Independent: Poll: Nevada voters oppose Medicaid cuts, Department of Education elimination

Trump’s Nevada poll number: +1. Trump’s 2024 margin of victory: +3.

The Associated Press: Man accused of setting fire to Tesla vehicles in Las Vegas arrested, police say

Attacks on Tesla have been reported around the country.

Notable and Quotable

“I don’t know what happened there or why or whatever, but if I ever suspect that I’m on a group whatever, I’m getting out of it.”

— Rep. Mark Amodei (R-NV), in an interview on Wednesday, on the Signal group chat

Vote of the Week

H.R.1048 — On Passage: DETERRENT Act

This Republican-sponsored bill tightens the standards for universities to receive foreign gifts, lowering the reporting threshold and prohibiting higher education from entering contracts with foreign countries of concern.

AMODEI: Not voting

HORSFORD: Yes

LEE: Yes

TITUS: No

Niche has named its 2025 Best Cities to Live in the U.S. The website also ranked the Silver State’s best communities.

Niche uses data from various sources including the U.S. Census Bureau, FBI, Centers for Disease Control and the Bureau of Labor Statistics to determine the best places to live in the United States.

Niche graded each place on 12 categories: public schools, housing, good for families, jobs, cost of living, outdoor activities, crime and safety, nightlife, diversity, weather, health and fitness, and commute.

Here’s a look at the best communities in Nevada and the nation.

What are the best communities in Northern Nevada?

1. Incline Village
2. Kingsbury
3. Mogul
4. South Lake Tahoe
5. Reno
6. Sparks
7. Gardnerville
8. Carson City
9. Spanish Springs
10. Minden

What are the best communities in Nevada overall?

1. Incline Village
2. Green Valley Ranch (a neighborhood in Henderson)
3. Kingsbury
4. MacDonald Ranch (a neighborhood in Henderson)
5. Enterprise (suburb of Las Vegas)
6. Summerlin
7. Green Valley South (a neighborhood in Henderson)
8. Anthem (a neighborhood in Henderson)
9. Sovana (a neighborhood in Las Vegas)
10. Henderson

What are the best places to live in the country?

The top 10 “Best Cities” in America, according to Niche:

1. Naperville, Illinois
2. The Woodlands, Texas
3. Cambridge, Massachusetts
4. Arlington, Virginia
5. Irvine, California
6. Plano, Texas
7. Columbia, Maryland
8. Overland Park, Kansas
9. Bellevue, Washington
10. Berkeley, California

Is Reno a good place to live?

Niche gave Reno a “B” grade based on 12 categories. Reno received the highest ratings from Niche in the Weather and Outdoor Activities categories where the Biggest Little City earned A-plusses. The ratings in Diversity and Commute followed close behind (A’s) as well as Health and Fitness, and Nightlife (Reno earned A-minus in both categories).

The Biggest Little City received B’s in the Public Schools and Good for Families categories and a B-minus in Jobs. Reno’s lowest scores were in Housing, Cost of Living, and Crime. Reno received a C-minus in all these categories.

Is Incline Village a good place to live?

Niche rated Incline Village as the best place to live not only in the Reno area, but Nevada as well. Incline Village received A ratings in Public Schools, Good for Families, Health and Fitness, and Outdoor Activities, followed closely by an A-minus rating in Jobs. Incline received B-plusses in Nightlife, Weather, Diversity and Commute.

Similar to Reno, Incline’s lowest ratings were in Housing (C) and Cost of Living (C-minus).