Key Takeaways
- The Nevada Gaming Control Board has filed a contempt motion against prediction platform Kalshi for allegedly violating a state court injunction
- The platform allegedly continued allowing Nevada users to place sports wagers despite a May 18 judicial order prohibiting such activity
- State officials claim Kalshi’s $190,000 IP-based blocking system has proven ineffective at preventing Nevada access
- State investigators successfully wagered on multiple sporting events including NBA playoffs, MLB games, boxing matches, tennis, and even a celebrity marriage through the platform
- Nevada authorities are pursuing either complete profit forfeiture or daily penalties totaling $120,000
Nevada gaming authorities have intensified their regulatory battle against prediction platform Kalshi, filing a contempt motion with the state judiciary over allegations the company has disregarded a court-imposed restriction.
The Nevada Gaming Control Board submitted the legal filing on Friday to the First Judicial District Court. The motion alleges Kalshi has persistently allowed Nevada residents to place sports wagers, directly contravening an injunction issued on May 18.
Court Order Requirements
The judicial directive from May 18 explicitly prohibited Kalshi from providing or enabling “any sports-, election-, or entertainment-related event contracts” to individuals within Nevada’s borders. According to state regulators, the company has failed to honor this mandate.
Authorities assert that Kalshi is processing wagers worth hundreds of millions of dollars on prominent events, including the NBA Finals, Stanley Cup Finals, and FIFA World Cup.
According to the Board’s court submission: “Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances, and its citizens.”
Location-Blocking Technology Issues
Central to this legal confrontation is geofencing technology — systems designed to limit platform access based on geographical location.
Kalshi invested $190,000 in what state officials characterized as an in-house system dependent entirely on IP address-based location blocking. Regulators described this methodology as “notoriously unreliable.”
Nevada officials contend that established commercial geolocation services are readily available, yet Kalshi declined to implement them. The Board characterized the company’s efforts as “only a half-hearted and ineffective measure.”
To verify the system’s inadequacy, Nevada enforcement personnel accessed Kalshi’s application and placed actual wagers. They successfully bet on NBA playoff matchups, Major League Baseball games, boxing bouts, tennis matches, and even a high-profile celebrity wedding — all while physically located in Nevada.
State’s Requested Remedies
The NGCB is petitioning the court to mandate either complete disgorgement of all revenue generated from Nevada users, or impose daily sanctions of $120,000 until the company achieves compliance.
Board chairman George Dreitzer emphasized that the court has already directed Kalshi to cease operations and that Nevada remains committed to upholding its gaming regulations.
According to Nevada statutes, sports event contracts qualify as gambling activity. Consequently, any entity offering such services must obtain a Nevada gaming license.
Kalshi has not secured this required license. The Board noted it has previously acted to terminate other unauthorized prediction market operators functioning within state boundaries.
The Board’s filing characterized Kalshi’s strategy with this assessment: “This is just more from the same old Kalshi playbook; delay, delay, delay.”
No hearing date for the contempt proceedings has been announced to the public.
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