Kalshi Agrees to Halt Certain Event Contracts in Nevada
Mike Goodpaster Published 29/07/2026
Kalshi has agreed to halt all sports, entertainment, and election prediction market contracts in the state of Nevada. The CFTC-regulated prediction market platform will be required to block these event contracts by August 12 or face paying $120,000 in fines per day. Nevada's Gaming Control Board (NGCB) calls Kalshi's activity unauthorized gambling.
Kalshi agreed to implement a geofencing fix without admitting fault. Previously, a Nevada court had ordered Kalshi to stop offering event contracts in the state. A court issued a preliminary injunction halting Kalshi from offering contracts on sports, election, or entertainment-related events in Nevada on May 18. However, Kalshi was accused of failing to obey this court order.
Kalshi failed to comply with a court order
On May 18, the First Judicial District Court in the State of Nevada entered a preliminary injunction. The ruling was halting Kalshi from offering contracts on sports, election, or entertainment-related events in Nevada. However, state investigators found that they were repeatedly able to enter into the contracts prohibited by the injunction. This was in direct violation of the court order.
With this new deal between the two sides, the NGCB is confident that this time, Kalshi will fully comply with the court's decision. The stiff penalties that the prediction market site would face for failing to do so should invoke the necessary desire to obey the rules. If not, the NGCB will be ready to pounce.
"We will continue to vigorously enforce Nevada law to safeguard gaming in our state," Nevada Gaming Control Board Chairman Mike Dreitzer told News 3 KSNV. "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."
NGCB threatens Kalshi with contempt of court charges
Citing the ability to access banned event contracts, the NGCB moved to have Kalshi held in contempt of court.
“Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances, and its citizens,” read the court filing seeking the contempt order.
As part of the new agreement, Kalshi avoided the contempt charges. As well, the prediction market site admitted to the court that it had violated the preliminary injunction by continuing to provide its users with access to the banned event contracts.
The agreement was filed with Nevada's First Judicial District Court on Thursday, July 23.
Kalshi was given until August 12 to set up the necessary geofencing on the designated event contracts. Failure to do so will result in daily financial penalties of $120,000.
The Governor of Nevada praises the NGCB
Hailing the victory by the NGCB was Nevada Governor Joe Lombardo.
"Nevada's gaming industry has earned its reputation as the gold standard because we uphold the highest standards of integrity, oversight, and enforcement," Lombardo told News 3 KSNV. "I commend Chairman Dreitzer and the Nevada Gaming Control Board for taking decisive action to ensure companies operating in our state comply with Nevada law.
"Protecting the integrity of Nevada's gaming industry is essential to preserving the public's trust and maintaining our position as the world's premier gaming destination."
Nevada is the fourth state that is forcing Kalshi to geofence its prediction market product. The other states are Michigan, Washington, and New York. Lawyers for Kalshi are appealing all of those decisions.