Popular trading exchange Kalshi agreed with the Nevada Gaming Control Board (NGCB) on Thursday to halt prohibited prediction market operations in the state.
Key Takeaways
- Kalshi will implement a geofence around the state to prevent users in Nevada from trading prohibited contracts.
- A violation of the agreement comes with a fine of $120,000 per day.
- The agreement ends a saga that began in March 2025.
Kalshi was already under a temporary restraining order approved by a judge in March after Nevada successfully argued the operator’s prediction markets violated state gambling laws. However, the NGCB said banned contracts, including sports, politics, and entertainment-related events, were still being accessed by users in Nevada, a violation of the court order.
Kalshi acknowledged that Nevada users could still access the prohibited contracts. Rather than be held in contempt, the prediction market operator has until Aug. 12 to implement a geofencing solution. If Kalshi is unable to block residents from accessing its platform by that date, the company faces a $120,000 per-day fine from the NGCB.
Enjoying Covers content? Add us as a preferred source on your Google account“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order,” NGCB chairman Mike Dreitzer said in a statement. “This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties.”
Dispute comes to a close
The NGCB said implementation is already underway from a third-party commercial provider, which will create a “robust, multi-source” geofence to identify and prevent residents within Nevada’s boundaries from trading on banned contracts.
The agreement, which was filed July 23, comes a month after Nevada asked a court to hold Kalshi in contempt for violating the preliminary injunction, which was at the center of the controversy between Kalshi and Netflix regarding a documentary on prediction markets.
This ends a lengthy saga between the state and operator that has dominated prediction market news. It began in March 2025 when Nevada gaming regulators sent a cease-and-desist letter to Kalshi. The operator and partner Robinhood began offering sports event contracts nationwide, including Nevada, in early 2025. Nevada saw prediction markets as a threat to the state’s decades-long gaming market.
Kalshi failed to comply with the cease-and-desist order and eventually challenged the state’s regulatory authority with a lawsuit. Kalshi argued its sports contracts didn’t fall under state regulation because its markets are approved federally by the Commodity Futures Trading Commission.
Kalshi tried to hold off Nevada’s legal enforcement through the courts, but it lost a key decision late last year, setting the stage for Nevada gaming regulators’ win.
Staying vigilant
The regulatory agency said in a statement it will continue to “vigrously” enforce Nevada law to safeguard the state’s gaming authority.
For now, the agreement appears to end Nevada's battle with CFTC-approved prediction markets.
“The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state and has successfully restricted the operation of all unlicensed prediction markets known to be operating in Nevada,” Dreitzer said.
