Kalshi Agrees Cease Sports Event Contracts and More in Nevada

After some legal back-and-forth, Kalshi and the Nevada Gaming Control Board have reached an agreement requiring Kalshi to no longer offer sports events, elections, or entertainment contracts in the state. The operations on these fronts will cease by August 12. 

The legal battle dates back to February, when the Nevada Gaming Control Board considered its illegal gambling. 

Should Kalshi not stop by that day, it'll incur a $120,000 per day fine. As part of the agreement, Kalshi will use a third-party geofence to prevent anyone in Nevada from accessing those specific markets. 

“This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties,” NGCB Chair Mike Drietzer said in a release. “We will continue to vigorously enforce Nevada law to safeguard gaming in our state.”

Agreement Resolves Months-Long Legal Dispute

In May, there was a preliminary injunction that stopped Kalshi from offering contracts. This came after a temporary restraining order was issued in March. 

The order from May prohibited the same contracts that are being prohibited now: sports events, entertainment, and elections. 

With this agreement, a hearing that was scheduled for Wednesday has now been canceled. 

Other States Continue Challenging Kalshi

All of this comes after several events. First, Nevada Rep. Dina Titus called out the CFTC in June, which was one of the latest call-outs. She's also called them out for what she calls "blatant corruption." 

Additionally, a Washington judge recently blocked Kalshi from offering sports event contracts. There were also Michigan issues with Kalshi, including the Michigan Gaming Control Board leaving the National Council on Problem Gambling after it partnered with Kalshi.

"Accordingly, MGCB is formally withdrawing its membership from NCPG. Please remove all references to the MGCB’s membership or affiliation with NCPG immediately. Additionally, MGCB employees will no longer serve on any board or committee of NCPG and will no longer attend any NCPG events, including the annual conference," MGCB Executive Director Henry Williams wrote in a letter to the NCPG.

We'll see if more states can reach similar agreements with Kalshi, such as including geofences and prohibiting sports, entertainment, and election contracts.