Nevada regulator seeks $120,000 daily fines against Kalshi
The Nevada Gaming Control Board says Kalshi failed to fully comply with a court order restricting its prediction contracts.
U.S.- The Nevada Gaming Control Board has asked a Carson City court to impose $120,000 in daily fines on Kalshi, alleging that the company continued offering sports, election and entertainment contracts in Nevada after an August 12 deadline. The regulator said investigators were able to purchase multiple prohibited event contracts from within the state using mobile phones.
The board said Kalshi “has profited enormously from its continued violations of Nevada law” and argued that the transactions should not have been possible under the court’s order. The dispute centres on the geofencing system Kalshi agreed to implement in July to prevent users located in Nevada from accessing the restricted contracts.
As part of its agreement with the state, Kalshi hired GeoComply, a Nevada-licensed technology provider, to implement a “robust, multi-source” geofencing solution. However, the Gaming Control Board said its investigators were able to complete trades after the deadline. According to the regulator, when gaming agents informed Kalshi about the transactions, the company said investigators had been using a previous version of its app that was not covered by geofencing.
In a letter to the board, Kalshi’s attorneys later claimed that investigators were able to place trades because they had misrepresented their residence to the company and, in at least one case, actively worked to circumvent restrictions designed to block Nevada users.
The company’s General Counsel Rick Heaslip called the regulator’s action “a vindictive waste of taxpayer dollars at the bidding of casinos.” He said the company had gone beyond the state’s requirements by hiring an approved vendor and keeping Nevada officials informed throughout the implementation process.
Meanwhile, the Gaming Control Board rejected Kalshi’s accusations as “baseless” and said the company could not use them to obscure that it had missed the agreed deadline. The regulator said Kalshi’s continued failure to comply with the court’s orders left it with no choice but to notify the court and seek enforcement of the penalties.
The broader dispute remains before the 9th US Circuit Court of Appeals, which is considering whether Nevada can enforce its effort to keep Kalshi and other prediction market operators from offering the disputed contracts in the state.
