- Kalshi and the Nevada Gaming Control Board entered into an agreement for the prediction market operator to complete geofencing in the state
- Rather than being held in contempt, Kalshi has agreed to immediately take steps to implement geofencing by Aug. 12
- The Nevada Supreme Court denied Kalshi’s motion for an emergency stay earlier this month
Kalshi has entered into an agreement with the Nevada Gaming Control Board to implement a multi-source geofencing solution in the state to prohibit certain event contracts, such as sports event contracts, by August.
The Nevada Gaming Control Board announced the agreement late Friday, July 24. Rather than being held in contempt, the prediction market operator will provide periodic updates to the board detailing its geofencing efforts and have the entire process completed by Wednesday, Aug. 12.
If Kalshi fails to have the process completed by that date it will be fined $120,000 a day until implementation is complete.
Third-Party Geofencing Required
Through the agreement, Kalshi is requirement to implement a “multi-source geofencing solution provided through GeoComply designed to prevent anyone located within the geographic
boundaries of the State of Nevada from placing trades in violation of the preliminary injunction.”
“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,” Nevada Gaming Control Board Chairman Mike Dreitzer said in a press release.
In the joint stipulation issued by the First Judicial District Court of the State of Nevada in and for Carson City, Kalshi acknowledged that, notwithstanding Kalshi’s implementation of IP-based and residency-based trading blocks, state investigators did successfully place traded in sports, election, and entertainment-related event contract during the court’s preliminary injunction.
“For the avoidance of doubt, Kalshi does not concede that any such trades amount to cause for an order of contempt, and Kalshi reserves all rights and defenses in this respect,” counsel for Kalshi wrote in the joint stipulation.
The Nevada geofencing requirements are similar to those Kalshi also faces in Michigan.
A Kalshi spokesperson told Sports Betting Dime the company will continue to defend its position in court.
“Nevada is trying to block its own residents from accessing a federally regulated market. Kalshi is subject to exclusive federal jurisdiction, not state law, and we’ll continue defending that position in court,” the spokesperson said.
Previous Nevada GeoFencing Difficulties
In June, the Nevada Gaming Control Board requested the First Judicial District Court for the State of Nevada hold Kalshi in contempt of court due to an alleged failure to geofence the state from several event contract markets.
The gaming control board alleged Kalshi did not 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.
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.
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.”
The post Kalshi Agrees to Fully Implement Nevada Geofencing By August appeared first on Sports Betting Dime.
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