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UKKalshi Agrees To Geofence Sports, Election, & Entertainment Contracts In Nevada Following Regulatory Settlement
Key Highlights
- Kalshi agreed to implement third-party geofencing to block prohibited contracts in Nevada by Aug. 12.
- The agreement resolves a pending contempt hearing after regulators alleged Kalshi violated a court order.
- Nevada continues leading state-level efforts to restrict sports prediction markets.
Nevada scored a major victory for states’ rights over prediction market regulation on July 27. Following a months-long legal battle, Kalshi has agreed to stop offering sports, election, and entertainment event contracts to users in the state.
Kalshi Reaches Agreement With Nevada Regulators
Kalshi will implement a third-party geofencing solution to ensure Nevada users are unable to access restricted event contracts. As part of its agreement with the Nevada Gaming Control Board (NGCB), it must fully block access to sports, election, and entertainment markets by August 12.
The settlement follows months of legal disputes between Kalshi and Nevada regulators, who argue the company’s event contracts fall under the state’s gaming laws. In July 2026, Nevada set a compliance deadline for restricted market access, and the NGCB issued a cease-and-desist order to Kalshi.
Kalshi could face penalties of up to $120,000 per day if it fails to enforce an effective geofencing solution by the August 12 deadline.
Court Battle Ends Before Contempt Hearing
The agreement comes after Nevada sought to hold Kalshi in contempt of court, alleging investigators could still access prohibited contracts despite earlier court orders requiring the company to geofence its platform.
In April, Judge Jason Woodbury of Nevada’s First Judicial District Court issued a preliminary injunction barring Kalshi from offering sports, election, and entertainment contracts in the Silver State. Regulators said IP-based restrictions were not sufficient, prompting the demand for a more robust third-party geofencing system.
With a settlement in place, the scheduled contempt hearing has been canceled.
Prediction Market Scrutiny Continues
Nevada’s action is part of a broader regulatory push against prediction markets that offer sports-related contracts. Similar legal disputes have emerged in other states, including Michigan and New York, as regulators debate whether federally regulated event contracts should also comply with state gambling laws.
Nevada lawmakers are also pursuing legislation that would prohibit prediction markets from offering casino-style games, similar to those at many Nevada casinos. The state’s aggressive enforcement has influenced major gaming companies, including DraftKings and FanDuel, to step back from prediction market efforts in Nevada while the legal landscape continues to evolve.
