Nevada Gaming Control Board Seeks $120K Daily Sanctions Against Kalshi for Geofencing Failure

^{Sanctions sought against Kalshi by the NGCB include a fine of $120,000 per day. (Photo: Cristian Bonaviri / Alamy)}

The Nevada Gaming Control Board (NGCB) is asking a court to punish prediction market platform Kalshi, as the regulator says the company has failed to implement effective geofencing measures to prevent users from trading what it contends are illegal event contracts in the state.

According to a June 4 filing with the First Judicial District Court for the State of Nevada, the NGCB says that investigators were still able to purchase barred event contracts in the state.

Regulators: Kalshi Failing to Comply with Court Orders

The contracts in question involve sports, elections, and entertainment-related events, which the NGCB says Kalshi was offering illegally without a license in violation of Nevada law.

The state's regulators had successfully obtained a preliminary injunction from the court on April 3. At the time, Kalshi was told that it had 30 days to use geofencing technology to prevent users from accessing such contracts in Nevada. 

“On May 18, 2026, the Court confirmed that Kalshi must geofence its customers so that those contracts are not available to customers within the geographic boundaries of Nevada,” the latest filing states. “It is now June 3, 2026, and Kalshi has not implemented geolocation and geofencing technology that prevents all people in Nevada from buying the covered contracts.”

The NGCB is asking the court to enforce sanctions against Kalshi for each day it fails to comply with the court order. The regulator seeks a fine of $120,000 per day, which it estimates as Kalshi’s profits from trades in Nevada. In addition, it asks that Kalshi be required to pay all legal fees incurred by the NGCB.

Nevada Just One Battleground in Larger Prediction Market War

In a reply sent on June 12 to support the initial filing, the NGCB claimed that it had provided information to Kalshi showing how they were able to make transactions from within Nevada, saying that the data it shared “should have been more than sufficient for any competent technology company to investigate issues with its geolocation technology.” 

Yet the filing states that Kalshi continues to accuse the regulator of acting in bad faith, while it says it is simply trying to enforce state law.

“Enough is enough,” the reply reads. “Kalshi needs to stop trying to deflect from its own bad actions and take seriously its obligation to comply with the Court’s order. It plainly will not do that unless this Court makes the consequences for noncompliance clear. The Court should hold Kalshi in contempt.”

The NGCB’s filing comes as regulators across the country have engaged in legal battles with prediction markets over whether sites like Kalshi and Polymarket can legally offer sports event contracts without holding sports betting licenses in individual states.

The prediction market platforms contend that because they are federally regulated by the Commodity Futures Trading Commission (CFTC), and because they believe their products are fundamentally different from sports betting operations, their operations do not have to comply with state gaming laws. The CFTC has supported prediction markets in these fights, and is currently proposing new rules to clarify and enshrine the types of contracts that it has jurisdiction over.