Kalshi to Shut Down Prediction Markets in Nevada
United States.- 29 July 2026 www.zonadeazar.com Kalshi has agreed to block access to its event contracts throughout Nevada after acknowledging that state investigators had still been able to trade on the platform despite an earlier court order.
The company must implement a multi-source geolocation solution by 12 August 2026. Failure to complete the restriction could result in a penalty of USD 120,000 per day until full compliance is achieved.
News Details
Nevada’s First Judicial District Court issued a preliminary injunction on 18 May prohibiting Kalshi from offering or facilitating contracts linked to sporting, electoral and entertainment events within the state.
Nevada Gaming Control Board investigators were nevertheless repeatedly able to access those markets. The regulator subsequently asked the court to hold the company in contempt for violating the injunction.
Kalshi initially implemented an internally developed geoblocking system based primarily on internet protocol addresses. The company maintained that the measure complied with the order, but the regulator considered it insufficient to prevent access from Nevada.
Under the new agreement, Kalshi must deploy a commercial, multi-source location system supplied by GeoComply. It will also provide the regulator with periodic reports detailing its implementation progress.
Industry Context
Kalshi operates as a designated contract market supervised at federal level by the Commodity Futures Trading Commission. In several legal disputes, the company has argued that its products are federally regulated financial derivatives rather than gambling products subject to individual state licensing.
Nevada takes the opposing position regarding contracts based on sporting outcomes and other events, maintaining that their availability within the state constitutes gambling activity requiring local authorisation. The agreement does not finally resolve that jurisdictional dispute, but it requires Kalshi to withdraw access in Nevada while proceedings continue.
The case also demonstrates the importance of geolocation for platforms offering products whose legality or availability differs between jurisdictions. Regulated US sportsbooks commonly use specialist systems to verify that wagers originate from authorised territories.
Statements
Nevada Gaming Control Board Chairman Mike Dreitzer said the agreement would ensure that Kalshi complied fully with state law or faced substantial financial penalties.
Dreitzer added that the authority would continue enforcing Nevada law to protect the state’s gaming sector and restrict unauthorised prediction-market activity.
Next Steps or Impact
A contempt hearing scheduled in connection with the dispute was cancelled following the agreement. Kalshi must now complete its geoblocking system and demonstrate that users located in Nevada cannot enter sporting, electoral or entertainment contracts.
The case may influence other states challenging the federal authority claimed by prediction-market platforms. Kalshi has also faced a geolocation order in Michigan, where an additional conflict emerged between state-court instructions and CFTC requirements concerning outstanding contracts.
The Nevada agreement states that its terms will not be altered by proceedings or findings in other jurisdictions.
Edited by: @_fonta
