Nevada gambling regulator puts the clamps on Kalshi
The Nevada Gaming Control Board has forced prediction market operator Kalshi to cease offering sports, election and entertainment event contracts in the state, with the company facing penalties of US$120,000 per day if it fails to fully block Nevada users by August 12.
The agreement follows allegations that Kalshi continued allowing customers in Nevada to trade sports prediction contracts despite a court injunction issued in May prohibiting the activity.
Announcing the settlement, Nevada Gaming Control Board Chairman Mike Dreitzer said regulators would continue aggressively targeting unlicensed prediction markets operating in the state.
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“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order. This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties. We will continue to vigorously enforce Nevada law to safeguard gaming in our state.
“The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state and has successfully restricted the operation of all unlicensed prediction markets known to be operating in Nevada.”
The dispute stems from a preliminary injunction issued by Nevada’s First Judicial District Court on May 18, which barred Kalshi from offering or facilitating contracts linked to sports, elections or entertainment events within the state.
According to the Gaming Control Board, investigators were repeatedly able to access and trade the prohibited contracts from inside Nevada after the order had taken effect, prompting regulators to seek contempt of court proceedings against the company.
Rather than contest the action, Kalshi has agreed to implement a new multi-source geofencing system supplied by a third-party provider designed to prevent anyone physically located in Nevada from accessing the prohibited markets.
The company has until August 12, 2026 to complete the rollout. If it misses the deadline, it will automatically incur penalties of US$120,000 for every day the system remains incomplete.
As part of the agreement filed with the court on July 23, Kalshi acknowledged that Nevada Gaming Control Board investigators had been able to enter sports, election and entertainment contracts from within the state after the injunction was granted.
The company also agreed to provide regular progress reports to regulators while the new geofencing technology is implemented.
The latest enforcement action marks another escalation in the growing legal battle between US gaming regulators and federally regulated prediction market platforms.
Nevada has emerged as one of the strongest opponents of sports event contracts, arguing they effectively constitute unlicensed sports betting and should only be offered by operators licensed under the state’s gaming laws.
The Gaming Control Board said it has already taken action against multiple prediction market operators and believes it has now successfully restricted every known unlicensed prediction market operating within Nevada.
