Nevada Asks Court to Enforce Daily Fines Against Kalshi

Despite earlier reports, the geo-fencing fight between Nevada and Kalshi appears far from over.

The Nevada Gaming Control Board (NGCB) has asked a state court to help it enforce a daily fine against Kalshi. It follows a ruling that forced the operator to block markets involving elections, entertainment, and sports. The court issued the order on July 23.

Kalshi and the NGCB reached an agreement soon after, setting a compliance deadline of August 12.

“Rather than being held in contempt, Kalshi has agreed to immediately take steps to implement a robust, multi-source geofencing solution provided by a third-party commercial provider, which will identify and prevent anyone within the geographic boundaries of the State of Nevada from entering into the prohibited contracts on Kalshi’s platform,” a press release from the NGCB stated. “Kalshi has already begun the implementation process and must complete it by August 12, 2026, or pay the Board a penalty of $120,000 per day until implementation is complete. Kalshi will also provide periodic updates to the Board detailing its progress.”

According to the regulator, Kalshi has attempted to block markets by IP address instead of using a full geofence. As highlighted in a recent Kalshi review of these legal and compliance hurdles, members of the regulator were still able to access the restricted markets, prompting them to take the industry-leading platform to court once again.

Nevada's fine is $120,000 for each day the operator fails to properly geofence the state to block the affected markets. 

The Walls Are Closing in for Kalshi

Nevada is just one of several legal battles Kalshi is currently engaged in, but the operator is starting to see similar results.

The biggest issue for the prediction platform’s legal argument is that several courts have found the industry’s federal protections don’t preempt state gambling laws. As a result, courts in Nevada and other US markets have begun granting preliminary injunctions to force operators like Kalshi to stop offering their markets.

While many prediction markets apps offer a wide range of categories, sports make up the majority of the volume. The lack of state regulations and taxes gives the industry an edge over regulated sportsbooks. However, recent legal losses suggest that edge may be in danger of disappearing.