Kalshi has agreed to stop offering its prediction markets in Nevada unless it completes a geofencing rollout by Aug. 12, with a daily penalty of $120,000 if it misses the deadline. The deal came after Nevada regulators said the company kept operating in the state despite court orders and enforcement action.
The Nevada Gaming Control Board said the agreement requires Kalshi to begin implementing a robust, multi-source geofencing solution through a third-party provider and to keep the board updated on progress. A contempt hearing was vacated once the stipulation was reached.
Sports Betting Dime reported that the system is to be provided through GeoComply and is designed to stop anyone inside Nevada from placing trades that would violate the injunction. The same reporting said Kalshi had been accused of failing to geofence its operations, even though it had already used IP-based and residency-based blocks.
The board has been pursuing the company through a series of legal steps. Its public timeline says it issued a cease-and-desist letter on Mar. 4, 2025, that Kalshi sued in federal court on Mar. 28, 2025, and that Nevada courts later entered orders in March and April 2026 barring prohibited event contracts.
In a March 20 press release, the board said a First Judicial District Court in Nevada entered a temporary restraining order against Kalshi. That order prohibited sports, election and entertainment event contracts in Nevada, and the board said Kalshi had been offering event-based contracts without a state gaming licence and in violation of Nevada law.
The board also said such offerings count as wagering activity under NRS 463.0193 and 463.01962, which is why entities must be licensed in Nevada. Its press release said Kalshi’s operations were unlawful under several statutes, including NRS 463.160, NRS 463.350, NRS 465.086 and NRS 465.092.
A June 1 update said Kalshi and Coinbase remained prohibited from offering or facilitating sports-, election- and entertainment-related event contracts in Nevada because of previously entered injunctions. It also said the board had restricted the operation of all unlicensed prediction markets known to be operating in the state.
The dispute intensified after regulators said investigators were able to place prohibited trades from within Nevada despite the existing blocks. CDC Gaming reported that the board sought contempt, while Sports Betting Dime said Kalshi acknowledged the trades in a joint stipulation but did not concede that they justified contempt. Kalshi has argued in federal court that the Commodity Futures Trading Commission has exclusive jurisdiction over the markets, a position the CFTC backs.
