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- The Nevada Gaming Control Board asked the First Judicial Court for the State of Nevada to hold Kalshi in contempt of court
- The board made the request after alleging Kalshi failed to properly geofence its operations from the state
- A May 18, 2026 court order required Kalshi to geofence its operations so it does not offer sports, elections, or entertainment based event contracts in the state
The Nevada Gaming Control Board requested the First Judicial District Court for the State of Nevada hold prediction market operator Kalshi in contempt of court due to an alleged failure to geofence the state from several event contract markets.
The gaming control board alleges Kalshi has yet to properly implement geofencing technology to prohibit Nevada residents from accessing its sports, election, or entertainment-related event contracts after the First Judicial District Court for the State of Nevada ordered the company to do so on May 18, 2026.
“The Court has required Kalshi to stop offering covered event contracts in Nevada. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” Nevada Gaming Control Board Chairman Mike Dreitzer said in a press release.
Requesting Significant Penalties
According to the Nevada Gaming Control Board’s contempt filing on June 12, Kalshi “is simply not complying with the court’s preliminary injunction order.”
“People located within Nevada are easily able to go to Kalshi’s platform and purchase Kalshi’s sports-, election-, and entertainment-related contracts. The board’s investigators have confirmed it over and over again, including several more times since the board filed its application,” Nevada Gaming Control Board counsel wrote.
Due to its alleged failure to geofence the state, the gaming control board “asks the court to enter a finding of contempt and to impose significant monetary penalties for violation of the court’s order.”
According to the filing, on eight separate occasions across four days from May 28, 30, 31, and June 1, 2026, board investigators successfully purchased prohibited event contracts on Kalshi’s platform while physically located in Nevada.
The First Judicial District Court of the State of Nevada in and for Carson City on Friday, March 20, granted the Nevada Gaming Control Board’s request for a temporary restraining order against Kalshi. The court made an oral ruling on April 3, 2026, requiring geolocation and geofencing for the state.
A Year Long Fight in Nevada
Legal action between the company and Nevada has been ongoing now for more than a year.
KalshiEX LLC filed its lawsuit against the NGCB for a cease-and-desist notice sent to the company regarding their sports event prediction markets on March 30, 2025.
The Nevada Gaming Control Board levied a cease-and-desist notice against Kalshi in early March, ordering the company to stop offering its sports event contract markets in the state by March 14, 2025. Kalshi did not acquiesce to the notice.
Kalshi argues that Congress previously gave the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction to regulate futures trading on approved exchanges. As the CFTC has allowed Kalshi to launch its sports event contract markets, state law cannot “intrude on the comprehensive federal scheme for regulating designated exchanges.”