Kalshi Selects GeoComply to Block Nevada Event Markets
United States.- 28 July 2026 www.zonadeazar.com Kalshi has agreed to implement a third-party geolocation solution preventing people physically located in Nevada from trading contracts linked to sports, elections and entertainment.
The company has contracted GeoComply to develop the system and must have it operational by 12 August 2026. Failure to meet the deadline could result in a penalty of US$120,000 per day.
News Details
The agreement was jointly submitted by Kalshi and the Nevada Gaming Control Board (NGCB) to a court in Carson City.
The technology must determine users’ physical locations and block access to prohibited contract categories within Nevada’s geographical boundaries. Kalshi must also provide the regulator with updates on the implementation process.
The solution will remain in place for the duration of the injunction preventing the platform from offering the relevant contracts in the state.
Kalshi previously relied on an internally developed system based mainly on IP addresses and residency information. However, NGCB investigators repeatedly succeeded in placing trades on markets that should have been unavailable.
Industry Context
The dispute forms part of a wider jurisdictional conflict between state gambling regulators and federally supervised prediction-market platforms.
Kalshi argues that its event contracts are derivatives regulated by the Commodity Futures Trading Commission, while Nevada considers contracts linked to sports, elections and entertainment to be gambling products requiring a state licence.
The NGCB issued a cease-and-desist notice against Kalshi in March 2025. Following federal and state proceedings, a Nevada court issued an injunction in April 2026 preventing the company from offering prohibited event contracts in the jurisdiction. In June, the regulator moved to have Kalshi held in contempt over alleged violations of that order.
The joint agreement means the scheduled contempt hearing can be cancelled for the time being.
Statements
NGCB Chair Mike Dreitzer said the agreement should ensure that Kalshi complies fully with Nevada law and warned that the company would face substantial penalties if it failed to meet its obligations.
He added that the regulator would continue enforcing state law actively to safeguard Nevada’s gaming market.
In the court filing, Kalshi acknowledged that state investigators had managed to trade restricted contracts despite its existing blocks. However, the company did not accept that those transactions provided sufficient grounds for a contempt order.
Next Steps or Impact
GeoComply must complete implementation by 12 August. The new solution will combine multiple location sources, providing a more robust control than Kalshi’s previous system, which relied principally on IP addresses.
The agreement could provide a model for other states seeking to block local access to specific prediction markets without excluding the platform entirely.
Kalshi is also working with GeoComply to comply with a similar order in Michigan, where it could face a US$500,000 daily penalty if it fails to implement the required system by the court-imposed deadline.
Edited by: @_fonta
