Kalshi agrees to Nevada geofencing by Aug 12 or face $120k daily fine

The Nevada Gaming Control Board has secured an agreement with prediction market operator Kalshi requiring it to implement a multi-source geofencing solution by August 12 or pay a penalty of $120,000 per day until compliance is achieved. The deal, filed with the First Judicial District Court on July 23, resolves a contempt motion after investigators repeatedly accessed prohibited contracts from within the state despite a May 18 preliminary injunction.

The May injunction barred Kalshi from offering or facilitating contracts on sports, elections, or entertainment events in Nevada. Board investigators, however, demonstrated that the platform remained accessible for such wagers. Kalshi admitted the access occurred and agreed to the geofencing measures rather than proceed with contempt litigation. In consequence, a scheduled contempt hearing has been vacated.

Agreement terms

Under the settlement, Kalshi must deploy a robust, multi-source geofencing system provided by a third-party commercial provider. The company has already begun implementation and must complete the roll-out by the August 12 deadline. Failure to meet it will trigger the daily fine until the system is fully operational. Kalshi is also required to furnish periodic progress updates to the Board.

Nevada Gaming Control Board Chair Mike Dreitzer stated: “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.” He added that the Board will “continue to vigorously enforce Nevada law to safeguard gaming in our state.”

Regulatory context

Kalshi has maintained in federal court that it falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state regulators—a position the CFTC supports. The Gaming Control Board, however, has taken action in recent months against other prediction markets and says it has successfully restricted all known unlicensed prediction market operators in Nevada.

The court filing that sought the contempt order argued that Kalshi’s non-compliance was causing ongoing harm: “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.” The filing called the situation “an intolerable state of affairs” and stressed the need for the court to hold Kalshi in contempt to ensure the message is received.