Kalshi agrees to Nevada geofencing deadline

• KalshiEX LLC has agreed, in a court filing, with the Nevada Gaming Control Board to fully block state residents from its event contracts.
• The company must complete third-party geofencing by August 12, 2026, or face fines of $120,000 per day.
• The agreement follows regulators’ claim that investigators could still buy prohibited event contracts from within the state after a May 2026 injunction.

Kalshi has agreed, in a court filing with Nevada’s First Judicial District Court, to fully block state residents from its sports, election, and entertainment-related event contracts.

The company chose the agreement over a scheduled contempt hearing, and must deploy third-party geofencing technology by August 12, 2026, or face fines of $120,000 per day.

Caught breaking the order

The dispute traces back to May 18, 2026, when Nevada’s First Judicial District Court issued a preliminary injunction barring Kalshi from offering event contracts tied to sports, elections, and entertainment. Regulators say the offerings fall under Nevada’s gaming laws and require proper licensing within the state.

Nevada had also argued that Kalshi’s existing location-verification method, an in-house system built on IP addresses, was insufficient to reliably block access from within the state. Regulators say investigators were still able to purchase prohibited event contracts from within Nevada, prompting the Board to seek contempt proceedings.

In an earlier court filing, regulators said investigators had successfully purchased prohibited contracts covering NBA and MLB games, a tennis match, a soccer match, and a mayoral election, all while located within the state.

In court filings submitted July 23, Kalshi acknowledged that investigators had accessed restricted contracts from within the state after the injunction took effect.

Racing the clock

Rather than proceed to a contempt hearing scheduled for this week, Kalshi agreed to implement a multi-source geofencing solution through third-party provider GeoComply. The joint stipulation, filed with the court on July 23, sets August 12, 2026 as the deadline for full implementation.

A contempt hearing set for Wednesday has been vacated as a result of the agreement. Kalshi has already begun deploying the technology and will give the Board periodic updates as the rollout continues.

Nevada calculated the $120,000 daily figure at roughly one-fiftieth of Kalshi’s estimated daily fee revenue in the state, a level regulators said was meant to remove any financial incentive for continued noncompliance.

The agreement resolves the immediate contempt threat, but it does not settle the wider legal question of whether Kalshi’s event contracts fall under federal Commodity Futures Trading Commission oversight or state gaming law, an issue still being litigated in Nevada and other states.

Mike Dreitzer, Chairman of the Nevada Gaming Control Board, said:

“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order. This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties.”

Nevada’s bigger fight

The Nevada Gaming Control Board describes the case as part of a broader effort to rein in unlicensed prediction markets, pointing to a similar restraining order against Polymarket earlier this year. Officials say they have also restricted access to Coinbase’s prediction markets product in the state.

Nevada regulators have said Kalshi accepted hundreds of millions of dollars in event contracts tied to marquee events including the World Cup, NBA playoffs, and Stanley Cup Finals during the period the injunction was in place.

The scrutiny comes as the prediction markets sector continues to grow, drawing interest from crypto platforms and traditional operators alike.

Kalshi faces a separate geofencing deadline in Michigan, also due August 12, where a court has set daily penalties of $500,000 for noncompliance in a case unrelated to the Nevada proceedings.