Nevada Orders Kalshi to Block Prohibited Markets by Aug. 12 or Face $120,000 Daily Penalty

Key Highlights

Nevada residents will have limited access to Kalshi as of August 12 thanks to a new court filing. The prediction market platform will face daily penalties of up to $120,000 if it doesn’t block Nevada users from sports, entertainment, and election markets.

Nevada Sets Firm Compliance Deadline

The Nevada Gaming Control Board (NGCB) reached a binding agreement requiring Kalshi to stop offering prediction contracts in the prohibited categories within the state. The regulator said the settlement is intended to end Kalshi’s continued operation of contracts that Nevada considers unlawful. 

The ruling follows months of conflict between the prediction market operator and state officials over whether users located in Nevada could continue accessing prohibited markets. The NGCB first issued a cease-and-desist order to Kalshi in March 2025. It’s also another blow for Kalshi, which recently had sports contracts restricted in Washington.

Before the latest compliance agreement, the NGCB said investigators repeatedly entered restricted contracts from inside the state, despite an existing court order requiring Kalshi to block them. 

Court Violations Lead To Settlement

On May 18,  Nevada’s First Judicial District Court issued a preliminary injunction against Kalshi. The order prohibited the company from offering or facilitating contracts tied to sports, elections, or entertainment events within Nevada.

The NGCB sought a contempt finding following an investigation that revealed Kalshi didn’t fully comply with the injunction. Hoping to avoid further court action, Kalshi entered negotiations rather than proceed to a contempt hearing. The agreement was filed with the court on July 23.

As part of the filing, Kalshi acknowledged that NGCB investigators had entered sports, election, and entertainment betting contracts from Nevada in violation of the court order. The company also outlined its compliance timeline and accepted the planned daily financial penalty if it fails to meet the August 12 deadline.

Geofencing System Must Block Nevada Users

Kalshi is now required to introduce a robust, multi-source geofencing system from a third-party commercial provider. The technology must prevent anyone located within Nevada from accessing the prohibited event contracts. Nevada gamblers still have access to online sportsbooks.

The company has started implementing the system and must provide periodic progress reports to the NGCB. Those updates will allow regulators to track whether Kalshi is meeting the terms of the agreement.

Mike Dreitzer, chairman of the NGCB, said the settlement gives Kalshi a clear choice between complying with Nevada law and facing significant financial consequences. He also reaffirmed the regulator’s plans to continue enforcing state gaming rules and restricting unlicensed prediction markets.