Kalshi Ordered to Complete Nevada Geofencing Rollout by August 12 or Face $120K Daily Fines

Kalshi has until August 12 to fully implement geofencing technology blocking Nevada users from its sports, election, and entertainment prediction contracts, or the company will begin owing the state $120,000 per day until it complies. The deadline comes as part of an agreement between Kalshi and the Nevada Gaming Control Board that heads off a contempt-of-court hearing that had been scheduled for this week.

The arrangement traces back to a preliminary injunction issued by Nevada’s First Judicial District Court on May 18, which barred Kalshi from offering or facilitating event contracts tied to sports, elections, and entertainment anywhere within the state. According to the Gaming Control Board, investigators repeatedly managed to enter those prohibited contracts on Kalshi’s platform even after the order took effect, prompting regulators to move for a contempt finding rather than let the violations continue.

How Kalshi Avoided a Contempt Ruling

Rather than face that hearing, Kalshi struck a deal with the Board. Gaming Control Board Chair Mike Dreitzer said Kalshi has agreed to immediately roll out a “robust, multi-source geofencing solution” built by a third-party commercial provider, specifically designed to identify and block anyone physically located in Nevada from accessing the restricted contracts. Kalshi has already started implementing the system, and the agreement requires it to finish the job by August 12. Miss that date, and the daily penalty clock starts running until the geofencing is fully operational. Kalshi will also have to send the Board periodic updates on its progress toward compliance.

“This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties,” Dreitzer said. “We will continue to vigorously enforce Nevada law to safeguard gaming in our state.”

A Bigger Fight Over Who Regulates Prediction Markets

The Nevada dispute is part of a broader jurisdictional battle playing out across the country. Kalshi has argued in federal court that it operates under the authority of the Commodity Futures Trading Commission rather than individual state gaming regulators — a position the CFTC itself has backed. Nevada regulators clearly disagree, and the Board noted it has already taken action against other prediction market operators in the state, saying it has successfully restricted every known unlicensed prediction market platform from operating there.

Court filings pushing for the contempt ruling laid out just how much volume was at stake, noting that Kalshi takes in “hundreds of millions” in wagers on marquee events like the NBA Finals, the Stanley Cup Finals, and the FIFA World Cup. Those filings argued that allowing Kalshi to keep operating without geofencing gave it an unfair edge over licensed sportsbooks in Nevada that already comply with the state’s geolocation requirements. “Kalshi is severely harming the gaming industry, because it refuses to follow the same rules as its licensed sportsbook competitors, who actually geofence,” the filing stated.

What Happens Next

For now, the contempt hearing that had been set for this week is off the table, and Kalshi has a firm two-week runway to get its geofencing fully operational. If the company hits the August 12 deadline, the dispute effectively resolves without further court action. If it doesn’t, the $120,000-per-day penalty gives Nevada regulators a concrete enforcement tool while the larger question of state versus federal jurisdiction over prediction markets continues to play out in courts nationwide. Bettors comparing regulated options can also check the latest Kalshi promo code offers or explore how prediction markets differ from traditional wagering in our prediction markets vs. sports betting guide.