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Nevada gaming regulators discuss fines for Kalshi court order non-compliance

Legal Writer

Publish Date: Aug 18, 2026

Fact checked by: Matt Moreno

Key Points

Nevada gaming regulators state people in state are still able to buy restricted event contracts in the state
Kalshi agreed to the geofencing requirement in July
Gaming control board members are calling for daily fines of $120,000

Nevada gaming regulators are calling for law enforcement in the state to impose fines on Kalshi for what they call a failure to comply with a state court’s order. The order, which Kalshi agreed to the terms of in July, compels Kalshi to block Nevadans’ access to entertainment and political event contracts.

Kalshi maintains that it has complied with the court order and that gambling regulators have only been able to access the markets because they violated the platform’s policies. The decisions of judges in multiple courts will decide whether Kalshi faces any fines and the long-term future of prediction market trading in Nevada.

Photographer: Gabby Jones/Bloomberg via Getty Images

Nevada Gaming Control Board calls on court to fine Kalshi

According to Howard Stutz of the Nevada Independent, members of the Nevada Gaming Control Board (NGCB) are alleging that Kalshi remains out of compliance with a July 24 settlement. The court order requires Kalshi to make trading of its event contracts related to entertainment and political events unavailable to people in Nevada.

However, NGCB members say that they are still able to access those contracts, which include sports markets, from within the state using agency devices. The NGCB is asking the Nevada First Judicial Court to fine Kalshi $120,000 for each day that it is non-compliant as a result.

Kalshi has responded that the trades in question were only made through deceptive means amid that call.

Kalshi says NGCB staff bypassed geofencing controls

Stutz reports that Kalshi is not disputing that the offending transactions took place. Rather, Kalshi states that it is in compliance with the July settlement and the NGCB staff misrepresented their locations to circumvent the geoblock.

Kalshi has employed Nevada-based GeoComply to limit Nevadans’ access to the event contract categories the settlement specified. The company also offers event contracts related to financial products and weather events, which the court order does not address.

Kalshi argues that the transactions in question were made using an older version of its app that did not incorporate the geofencing in addition to the NGCB providing false location information. How the Nevada state court and other courts read the situation will ultimately determine whether Kalshi faces fines.

Nevada, federal appeals courts due to weigh in on situation

While Kalshi waits to see whether the Nevada First Judicial Court will hold it in contempt, it and other prediction market exchange operators are also awaiting a decision from the United States Ninth Circuit Court of Appeals. Kalshi, along with Crypto.com and Polymarket, have asked the Ninth Circuit to issue a stay against the court order compelling the trading restrictions.

To date, those proceedings have gone in Nevada’s favor. The same court declined a similar request in May which enabled the NGCB to obtain the July court order that is now in effect.

If the Ninth Circuit acts in kind on the latest stay request, Kalshi will see another of its legal options to offer all of its contracts in Nevada fade. In the meantime, it could also face hundreds of thousands of dollars in fines.

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