CARSON CITY, Nev. – The Nevada Gaming Control Board has asked a state court to hold prediction‑market operator Kalshi in contempt, alleging the company violated a court order requiring it to block Nevada residents from placing wagers on its platform.
In a filing with Nevada’s First Judicial District Court, regulators said Kalshi failed to implement geofencing measures mandated under a May 18 preliminary injunction prohibiting the company from offering sports‑related event contracts in the state. The NGCB argued that Kalshi’s continued operation in Nevada is causing “significant and ongoing harm” to the state, its regulated gaming industry and its residents.
According to the complaint, Kalshi has taken “hundreds of millions of dollars” in wagers on events including the NBA Finals, Stanley Cup Final and FIFA World Cup while avoiding the geolocation requirements imposed on licensed sportsbooks. Regulators said that failure puts legal operators at a competitive disadvantage and undermines the integrity of Nevada’s gaming market.
Citing its investigation and what it described as Kalshi’s own admissions of noncompliance, the NGCB urged the court to impose sanctions.
Regulators Seek Heavy Penalties
The NGCB asked the court to find Kalshi in contempt and impose substantial financial penalties, including either forfeiture of all profits earned during the alleged violations or fines of $120,000 per day. Newly appointed NGCB Chair Mike Dreitzer said in a statement that the court’s order barring Kalshi from offering covered event contracts in Nevada must be enforced.
The board maintains that sports event contracts and certain other event‑based wagers qualify as gambling under Nevada law and therefore require licensing and regulatory oversight. Dreitzer said Nevada’s gaming framework is designed to protect public health, safety and the state’s economic interests.
Industry Ripples
Kalshi has been at the center of multiple regulatory disputes nationwide as prediction markets face increased scrutiny. The company recently announced a partnership with global sports data provider Sportradar, a move that has fueled speculation about the future intersection of prediction markets and sports betting.
