Kalshi must geofence Nevada or face $120,000 daily penalty
The Nevada Gaming Control Board has reached an agreement requiring the prediction market operator to implement a multi-source geofencing solution.
US.- The Nevada Gaming Control Board has reached an agreement requiring the prediction market operator Kalshi to implement a multi-source geofencing solution by August 12, or pay a penalty of $120,000 per day until compliance is achieved. The agreement was filed with the First Judicial District Court on July 23.
A preliminary injunction issued on May 18 had prohibited Kalshi from offering or facilitating contracts on sports-, election- or entertainment-related events within Nevada. However, Board investigators said they were still able to enter prohibited contracts from inside the state. Kalshi admitted that access occurred and agreed to the geofencing measures rather than face contempt proceedings.
Kalshi said it has already begun the implementation process using a third-party commercial provider. The company must provide periodic progress updates to the Board.
Mike Dreitzer, Nevada Gaming Control Board chairman, said: “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.
