Kalshi can no longer offer sports, election, and entertainment prediction contracts to the people of Nevada, US, according to a recent agreement secured by gaming regulators. Should the company fail to comply, it risks paying a hefty daily fine.
Months of Disputes
The decision comes after long months of legal disputes dating back to May 18, 2026, and follows a disturbing discovery made by investigators: the company kept offering its services to state residents despite a court injunction issued by the First Judicial District Court.
The preliminary injunction banned Kalshi from offering event-based contracts tied to sports, elections, and entertainment within Nevada.
Nevada regulators argued that these offerings fall under Nevada’s gaming laws and require appropriate licensing.
Nonetheless, according to the Gaming Control Board, investigators had no problem repeatedly accessing and purchasing prohibited contracts while they were physically located in Nevada, which made officials seek contempt proceedings against the company.
The Geofencing Solution
Last week, the Nevada Gaming Control Board explained that KalshiEX LLC will implement enhanced geofencing technology as a way of preventing anyone located within the state from accessing prohibited contracts on its platform.
Instead of facing a contempt hearing, Kalshi has agreed to outline a timeline for compliance, choosing August 12, 2026 as the date when it must fully implement a third-party geofencing system.
Any delay will make Kalshi subject to penalties of $120,000 per day until the restrictions are in place.
Efforts Underway
Kalshi has already begun deploying the technology and will provide regulators with regular updates on its progress. In court filings submitted on July 23, the company acknowledged that Nevada investigators had been able to access restricted contracts from within the state after the injunction was issued.
Nevada Gaming Control Board Chairman Mike Dreitzer said the agreement reinforces the state’s commitment to protecting its regulated gaming industry.
“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order,” Dreitzer said. “This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties.”
The case is part of a broader effort by Nevada regulators to crack down on unlicensed prediction markets. In recent months, the Board says it has taken action against multiple operators and has successfully restricted all known unlicensed prediction platforms operating within the state.