Nevada Orders Kalshi Compliance With August 12 Deadline

Kalshi has agreed to stop offering certain event-based contracts to Nevada residents by August 12, following an agreement with the Nevada Gaming Control Board (NGCB) that resolves a pending contempt proceeding tied to alleged violations of a court order.

State regulators announced (pdf) that the prediction market operator must complete the implementation of a geofencing system designed to prevent users located within Nevada from accessing sports, election, and entertainment-related contracts. If the company fails to meet the deadline, it will face financial penalties of $120,000 per day until compliance is achieved.

The agreement follows months of legal disputes between Nevada regulators and Kalshi regarding whether the company can continue offering event contracts in the state.

Regulators Cite Violations of Court Injunction

The dispute stems from a preliminary injunction issued on May 18, 2026, by Nevada’s First Judicial District Court. The order prohibited Kalshi from offering or facilitating contracts tied to sports, elections, or entertainment events within state boundaries.

According to the Nevada Gaming Control Board, investigators continued to access and enter into contracts that the court had barred after the injunction was issued. Regulators subsequently sought to have Kalshi held in contempt of court for failing to comply with the order.

Rather than proceed with a contempt hearing, the two sides reached an agreement that outlines specific compliance measures and establishes a firm deadline for implementation. As a result, a hearing that had been scheduled for the following week was vacated.

The settlement requires Kalshi to deploy what regulators described as a robust, multi-source geofencing system supplied by an independent commercial provider. The technology is intended to identify users located within Nevada and prevent them from participating in prohibited contracts through Kalshi’s platform.

State officials said Kalshi has already started the implementation process and must complete it by August 12.

Agreement Includes Daily Financial Penalty

The terms filed with the court require Kalshi to provide periodic progress reports to regulators while the geofencing solution is being deployed.

The agreement also contains an acknowledgment by Kalshi that Nevada Gaming Control Board investigators were able to access sports, election, and entertainment-related contracts from within Nevada after the injunction took effect. The filing further details the company’s planned compliance process and timeline.

Should the company miss the August 12 deadline, it has agreed to pay $120,000 for each day the implementation remains incomplete.

Nevada Gaming Control Board Chairman Mike Dreitzer said the agreement creates a mechanism to ensure compliance with state law.

“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,” stated Dreitzer.

Dreitzer also highlighted broader regulatory efforts involving prediction market operators.

“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,” he added.

Ongoing Debate Over Regulatory Authority

The case forms part of a wider legal dispute surrounding prediction markets and the extent of state gaming regulators’ authority over such platforms.

Nevada regulators have argued that Kalshi has accepted hundreds of millions of dollars in wagers tied to major sporting events, including the NBA Finals, Stanley Cup Finals, and FIFA World Cup. The Board has maintained that operators offering such contracts within Nevada must comply with the same regulatory standards that apply to licensed sportsbooks, including effective geofencing requirements.

In a court filing seeking contempt sanctions, regulators argued that Kalshi’s continued operation after the injunction created ongoing harm within the state.

“Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances, and its citizens,” according to the filing.

The filing continued: “Every day, Kalshi takes in hundreds of millions in wagers on such events as the NBA Finals, the Stanley Cup Finals, and FIFA World Cup. At the same time, Kalshi is severely harming the gaming industry, because it refuses to follow the same rules as its licensed sportsbook competitors, who actually geofence. This is an intolerable state of affairs. In light of the Board’s investigation and Kalshi’s own admissions that establish its violation of the court order, the court shall hold Kalshi in contempt. Kalshi will never get the message otherwise.”

Kalshi has consistently argued in federal court that it operates under the oversight of the Commodity Futures Trading Commission (CFTC) and therefore falls outside the scope of state gaming regulation. The company’s position has received support from the CFTC.