The Nevada Gaming Control Board (NGCB) has filed a request with a state court to hold KalshiEX LLC, a prediction market operator, in contempt. The board claims that Kalshi has not adhered to a court order mandating it to cease offering specific event contracts to individuals in Nevada.
In a submission to the First Judicial District Court of Nevada, regulators highlighted that Kalshi has ignored a preliminary injunction issued on May 18, 2026, which required the company to geofence its operations and restrict access to sports, election, and entertainment-related event contracts from within the state.
The NGCB is pursuing a contempt ruling alongside significant financial penalties, which could include either the return of what it describes as improperly acquired revenue or daily fines of $120,000 for breaching the court order.
Despite the court's directive, Kalshi continues to accept contracts related to major sporting events. Regulators noted that the company is processing hundreds of millions of dollars in bets on events such as the FIFA World Cup, NBA Finals, and Stanley Cup Finals, while failing to implement the necessary geolocation measures mandated by Nevada law.
According to the filing, Kalshi's ongoing noncompliance is inflicting serious and continuous harm to Nevada, its economy, and its residents. The regulators stated, “Every day, Kalshi generates hundreds of millions in wagers on events like the NBA Finals and FIFA World Cup.”
Furthermore, the NGCB asserted that Kalshi is undermining the gaming industry by not adhering to the same regulations as licensed sportsbook competitors who do implement geofencing. “This situation is unacceptable. Given the Board’s investigation and Kalshi’s own admissions of violating the court order, the court should find Kalshi in contempt,” they emphasized.
The NGCB mentioned that Kalshi has admitted to spending around $190,000 on a proprietary geolocation system that relies exclusively on internet protocol-based geofencing, which the board criticized as unreliable for accurately determining user locations. They alleged that the company has refused to utilize commercially available geolocation solutions.
“This is just more from the same old Kalshi playbook; delay, delay, delay,” the filing remarked. “Instead of complying with the court’s order, Kalshi has only made half-hearted attempts, seemingly hoping the court will accept its insufficient efforts, allowing it to continue profiting at the expense of the state and its citizens.”
Regulators reported that their investigators were able to purchase contracts through Kalshi's app for various events, including NBA playoff games, Major League Baseball games, a boxing match, a tennis match, and even a celebrity wedding, all while located in Nevada.
The board maintains that these offerings are still accessible despite the court order that requires the company to block Nevada residents and visitors from accessing covered event contracts.
“The Court has mandated Kalshi to halt offering covered event contracts in Nevada. We will continue to rigorously enforce Nevada law to protect gaming in our state,” stated NGCB Chairman Mike Dreitzer.
In recent months, the NGCB has also taken action against other prediction market operators and successfully restricted all unlicensed prediction markets known to have operated in Nevada.
According to the board, sports event contracts and certain other event-related contracts are considered wagering activities under Nevada law. Therefore, entities providing such products must possess the appropriate gaming licenses in the state.
Regulators reiterated that Kalshi's operations are unlawful in Nevada and violate several provisions of state gaming laws, including NRS 463.160, NRS 463.350, NRS 465.086, and NRS 465.092.
The board also reaffirmed Nevada's long-standing stance on gaming regulation.