Nevada Says Kalshi Violated Geofence Agreement, Seeks $120K Daily Fine

According to the Nevada Gaming Control Board, Kalshi failed to comply with a preliminary injunction that would have barred the prediction market platform from offering specific event contracts in the state, and as a result, they've told a state court. 

This comes after Kalshi and the NGCB seemingly came to an agreement in which Kalshi would've used a third-party geofence to prevent traders in Nevada from accessing markets. If not, Kalshi would've incurred a $120,000 fine daily. 

The agreed-upon date for these things to spring into action was August 12, but the NGCB claims that didn't happen and that Kalshi should be on the hook for that daily fine. 

Kalshi Disputes Nevada's Noncompliance Claims

According to a Kalshi attorney, board investigators "were able to place a trade because they had violated federal law by misrepresenting their residence to Kalshi, and, in at least one instance, actively worked to circumvent the Kalshi restrictions that blocked the investigator from trading," according to Howard Stutz of The Nevada Independent. 

Furthermore, Kalshi General Counsel Rick Heaslip called the lawsuit "a vindictive waste of taxpayer dollars at the bidding of casinos."

He added Kalshi "went above and beyond to geofence Nevada as requested. We hired a state-approved vendor and updated Nevada every step of the way, with no response." 

Following the initial agreement regarding the geofence, here's what NGCB Chair Mike Drietzer had to say: 

“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.”

Kalshi Faces Legal Battles in Multiple States

This legal battle dates back to March 2026. Then, in May, there was a preliminary injunction that stopped Kalshi from offering contracts. This came after the temporary restraining order in March. 

Kalshi has many other states to deal with from a legal perspective, too.

Another major legal headline is New York, where a judge denied Kalshi's request to block enforcement of the sports gambling law. Then, after that decision, the Commodity Futures Trading Commission ordered Kalshi to continue.