Nevada gaming regulators are asking a state court docket to carry prediction-market operator Kalshi in contempt, saying the corporate continues to permit entry to sports-related occasion contracts from inside Nevada regardless of an present court docket order.
In a submitting submitted to the First Judicial District Court docket and introduced on Friday (June 12), the Nevada Gaming Management Board stated investigators had been nonetheless capable of place trades from Nevada after a Could 18 amended preliminary injunction required Kalshi to dam entry to sports activities, election, and leisure contracts by way of geofencing measures.
“The Court docket has required Kalshi to cease providing coated occasion contracts in Nevada. We are going to proceed to vigorously implement Nevada legislation to safeguard gaming in our state,” Nevada Gaming Management Board Chairman Mike Dreitzer stated in a assertion.
The most recent submitting marks one other chapter in a dispute that started in March 2025, when the board issued a cease-and-desist letter ordering Kalshi to halt what regulators described as illegal exercise in Nevada. On the time, regulators argued that event-based contracts supplied by the corporate amounted to gaming exercise topic to Nevada licensing necessities.
Nevada board requires contempt sanctions in opposition to Kalshi over geolocation method
Nevada maintains that sports activities occasion contracts and sure different prediction-market merchandise qualify as wagering beneath state legislation and should solely be supplied by correctly licensed operators. Regulators have repeatedly argued that Kalshi’s enterprise mannequin violates a number of provisions of Nevada gaming statutes.
In response to the board, investigators examined the platform a number of instances after the injunction took impact and had been capable of buy contracts tied to NBA playoff video games, Main League Baseball contests, boxing matches, tennis occasions, soccer video games, and different markets whereas bodily situated in Nevada.
A lot of the board’s argument facilities on Kalshi’s reported reliance on IP-address geolocation. Regulators contend that licensed sportsbooks usually use a number of verification instruments, together with GPS, wireless-network knowledge, and cell-tower data, whereas Kalshi relied totally on IP-based checks that didn’t precisely establish person places.
The contempt request follows a collection of courtroom setbacks for Kalshi. In March 2026, a federal choose denied the corporate’s request to pause Nevada’s enforcement motion, ruling that “Litigating in state court docket will not be a hurt, not to mention an irreparable hurt.” The case was then returned to Nevada state court docket.
Later that month, the First Judicial District Court docket granted a short lived restraining order blocking Kalshi from providing sports activities, election, and leisure contracts within the state. Regulators subsequently secured a preliminary injunction in opposition to Polymarket US as a part of a wider enforcement marketing campaign focusing on unlicensed prediction-market operators.
Nevada says it has now obtained restrictions in opposition to Kalshi, Polymarket, and Coinbase involving coated occasion contracts. The board is in search of sanctions that might embody disgorgement of income earned from Nevada-related exercise after the injunction or a each day penalty it estimates ought to be not less than $120,000 per day. Regulators are additionally requesting attorneys’ charges and prices related to the contempt proceedings.
Featured picture: Kalshi / Canva
