Nevada Regulator Says Kalshi Should Pay $120,000 Per Day for Noncompliance With Court Order

Nevada’s Gaming Control Board told a Carson City court in a late Friday filing that prediction market operator Kalshi has failed to comply with a judge’s order to stop offering sports, election, and entertainment contracts in the state, and it wants the company to pay $120,000 for every day it remains out of compliance. The filing accuses Kalshi of missing an Aug. 12 deadline to fully implement geofencing that would block Nevada users from the platform.

The dispute is the latest flashpoint in a monthslong legal battle over whether prediction markets like Kalshi can operate in states where sports wagering falls outside a licensed sports betting framework, and it comes as Nevada regulators say they’ve grown increasingly frustrated with the company’s pace of compliance.

How the Penalty Deal Came Together

The $120,000-a-day figure isn’t a new invention by the board — it traces back to a July 23 agreement Kalshi and the Gaming Control Board filed with the First Judicial District Court. That deal was meant to resolve a contempt fight after board investigators repeatedly managed to enter into sports, election, and entertainment contracts on Kalshi’s platform from inside Nevada, despite a preliminary injunction issued back on May 18 ordering the company to geofence the state entirely.

Rather than pursue contempt at that time, the board let Kalshi commit to implementing a “robust, multi-source” geofencing solution through a third-party provider, with a hard deadline of Aug. 12. Miss that date, the agreement said, and the penalty clock starts ticking at $120,000 per day until the company is fully compliant.

What the Board Is Alleging Now

According to the board’s latest filing, Kalshi blew through that Aug. 12 deadline. State investigators say they were still able to purchase multiple event contracts in the banned categories using mobile phones inside Nevada — activity the board says “none of which should have been possible” under the court’s order. The board’s filing goes further, alleging Kalshi “has profited enormously from its continued violations of Nevada law.”

Kalshi has pushed back. In an unsigned statement posted to its website over the weekend, the Gaming Control Board called the company’s counter-accusations “baseless,” adding that Kalshi “cannot obscure the fact it missed an agreed-upon deadline to comply with Nevada law.” The board said Kalshi’s “consistent failures to comply with the court’s orders left the board with no choice but to advise the court of Kalshi’s noncompliance.”

The Bigger Legal Fight Isn’t Settled Yet

This standoff plays out against a much larger backdrop. Nevada, Kalshi, and other prediction market operators are still waiting on a ruling from the 9th U.S. Circuit Court of Appeals that could determine whether the state’s authority to ban these companies holds up at all. Kalshi and its allies have argued in that case that its contracts are federally regulated swaps under the Commodity Exchange Act, which they say preempts state gambling law entirely — a position the Commodity Futures Trading Commission has backed in briefs to the court. Nevada has countered that treating sports contracts as swaps would gut states’ ability to regulate sports betting apps and licensed wagering altogether.

For now, it’s up to the Carson City court to decide whether the $120,000-a-day penalty sticks, and whether Kalshi’s federal-law defenses carry any weight before the appeals court weighs in. Until then, Nevada regulators appear intent on treating every day of continued access as another day the company owes the state money.