Regulation

Kalshi Must Stop Nevada Wagers by Aug. 12 or Face $120K

July 28, 2026
Priya Patel

The Nevada Gaming Control Board has reached an agreement with prediction market operator Kalshi, requiring it to cease accepting wagers from within Nevada by August 12 or face a $120,000 daily fine. This follows a May 18 preliminary injunction issued by the First Judicial District Court of Nevada that prohibited Kalshi from offering or facilitating certain contracts to Nevada residents. Despite the court order, investigators found Kalshi continued to accept wagers from within the state, prompting regulatory action.

Kalshi’s platform reportedly took hundreds of millions of dollars in wagers on major sporting events such as the NBA Finals, Stanley Cup Finals, and FIFA World Cup without implementing effective geofencing technology. Geofencing restricts access based on geographic location and is a standard compliance tool used by licensed sportsbooks in Nevada to prevent unauthorized betting.

The Nevada Gaming Control Board accused Kalshi of failing to geofence its operations properly, allowing Nevada residents to place bets in violation of state law. Board Chair Mike Dreitzer stated, “This agreement will ensure that Kalshi fully complies with Nevada law moving forward or it will face stiff penalties,“ highlighting the state’s commitment to enforcing its gaming regulations.

Under the agreement filed with the court, Kalshi must implement a robust, multi-source geofencing solution provided by a third-party commercial vendor. The company has already begun this process and must complete it by August 12. Failure to meet this deadline will result in a $120,000 daily fine until compliance is achieved. Kalshi is also required to provide periodic progress updates to the Board.

Kalshi admitted that Board investigators were able to enter into sports, election, and entertainment contracts from within Nevada, violating the court order. The company detailed its timeline for full compliance and accepted the penalty terms. This development led to the cancellation of a scheduled contempt hearing.

For players and bettors in Nevada, this means Kalshi’s prediction market contracts will soon be inaccessible unless the company fully complies with state regulations. Using unlicensed or unlawful gambling platforms can expose consumers to risks such as lack of dispute resolution, unclear terms, and potential financial harm. Nevada’s enforcement actions aim to protect players by ensuring all operators meet regulatory standards.

Kalshi has argued in federal court that it falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state regulators, a position supported by the CFTC. However, Nevada regulators have taken a firm stance, successfully restricting unlicensed prediction markets operating in the state to maintain the integrity of Nevada’s gaming industry.

Players should consider using licensed sportsbooks that comply with state laws and provide established consumer protections. More information on Nevada’s sports betting regulations and player safeguards is available on GamblingNews.today USA and the Regulation section.

Recent developments in Nevada’s sports betting market include Boomer’s Sportsbook expanding its footprint and Caesars assuming operations of the Westgate SuperBook, reflecting ongoing changes in the state’s regulated betting environment. Details are available in CDC Gaming’s report on Boomer’s Sportsbook Expansion.

Source: CDC Gaming.

Priya Patel
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