TLDR Nevada’s Gaming Control Board is asking a state court to hold prediction market platform Kalshi in contempt for violating a court injunction Kalshi is accused of failing to block Nevada residents from betting on sports events despite a May 18 order Regulators say Kalshi spent $190,000 on an IP-based geofencing system that doesn’t work reliably Nevada investigators were able to successfully place bets on NBA games, MLB, boxing, tennis, and a celebrity wedding through Kalshi’s app The state is seeking either full disgorgement of profits or a daily fine of $120,000
Nevada’s gaming regulators have escalated their legal fight with prediction market platform Kalshi, asking a state court to hold the company in contempt for ignoring a court order.
The Nevada Gaming Control Board filed the motion Friday with the First Judicial District Court. It accuses Kalshi of continuing to accept sports bets from Nevada residents, in direct violation of a May 18 injunction.
What the Injunction Requires
The May 18 court order told Kalshi it must not offer or facilitate “any sports-, election-, or entertainment-related event contracts” in Nevada. The state says Kalshi has not complied.
Regulators claim Kalshi is taking in hundreds of millions of dollars in wagers on major events. These include the NBA Finals, the Stanley Cup Finals, and the FIFA World Cup.
The Board’s filing states: “Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances, and its citizens.”
The Geofencing Problem
At the heart of the dispute is geofencing — technology that restricts access to a platform based on a user’s location.
Kalshi spent $190,000 on what regulators called a “homegrown solution” that relied solely on IP-based geofencing. The Board called this approach “notoriously unreliable.”
Nevada regulators say proper commercial geolocation