Nevada gaming regulators are asking a state court to hold prediction-market operator Kalshi in contempt, saying the company continues to allow access to sports-related event contracts from within Nevada despite an existing court order.
In a filing submitted to the First Judicial District Court and announced on Friday (June 12), the Nevada Gaming Control Board said investigators were still able to place trades from Nevada after a May 18 amended preliminary injunction required Kalshi to block access to sports, election, and entertainment contracts through geofencing measures.
“The Court has required Kalshi to stop offering covered event contracts in Nevada. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” Nevada Gaming Control Board Chairman Mike Dreitzer said in a statement.
The latest filing marks another chapter in a dispute that began in March 2025, when the board issued a cease-and-desist letter ordering Kalshi to halt what regulators described as unlawful activity in Nevada. At the time, regulators argued that event-based contracts offered by the company amounted to gaming activity subject to Nevada licensing requirements.
Nevada board calls for contempt sanctions against Kalshi over geolocation approach
Nevada maintains that sports event contracts and certain other prediction-market products qualify as wagering under state law and may only be offered by properly licensed operators. Regulators have repeatedly argued that Kalshi’s business model violates several provisions of Nevada gaming statutes.
According to the board, investigators tested the platform multiple times after the injunction took effect and were able to purchase contracts tied to NBA playoff games, Major League Baseball contests, boxing matches, tennis events, soccer games, and other markets while physically located in Nevada.
Much of the board’s argument centers on Kalshi’s reported reliance on IP-address geolocation. Regulators contend that licensed sportsbooks typically use multiple verification tools, including GPS, wireless-network data, and cell-tower information, while Kalshi relied primarily on IP-based checks that failed to accurately identify user locations.
The contempt request follows a series of courtroom setbacks for Kalshi. In March 2026, a federal judge denied the company’s request to pause Nevada’s enforcement action, ruling that “Litigating in state court is not a harm, let alone an irreparable harm.” The case was then returned to Nevada state court.
Later that month, the First Judicial District Court granted a temporary restraining order blocking Kalshi from offering sports, election, and entertainment contracts in the state. Regulators subsequently secured a preliminary injunction against Polymarket US as part of a wider enforcement campaign targeting unlicensed prediction-market operators.
Nevada says it has now obtained restrictions against Kalshi, Polymarket, and Coinbase involving covered event contracts. The board is seeking sanctions that could include disgorgement of profits earned from Nevada-related activity after the injunction or a daily penalty it estimates should be at least $120,000 per day. Regulators are also requesting attorneys’ fees and costs associated with the contempt proceedings.
Featured image: Kalshi / Canva
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