Kalshi has leveled serious allegations against Nevada gaming regulators, claiming they misrepresented their residence and attempted to bypass restrictions that prevented them from trading after the August 12 deadline.
The prediction market platform is embroiled in a legal battle with the Nevada Gaming Control Board (NGCB), which asserts that Kalshi did not adhere to a court order mandating the cessation of event contracts related to sports, entertainment, and elections by the specified date.
In a recent court filing dated August 14, the NGCB requested the First Judicial District Court to impose daily fines of $120,000 along with the state’s legal fees, arguing that Kalshi has significantly benefited from its ongoing violations of Nevada law.
According to the NGCB, investigators executed nine trades on Kalshi’s app from within Nevada just one day after the deadline. Prosecutors contend that the court's order should have barred these trades.
In response, Kalshi accused Nevada investigators of violating federal law by misrepresenting their residence and, in some cases, actively working to bypass the restrictions that prevented them from trading.
Rick Heaslip, Kalshi’s General Counsel and Chief Regulatory Officer, intensified the rhetoric in a public statement, asserting that the company had made every effort to geofence Nevada as required. He noted that Kalshi employed a state-approved vendor and kept regulators updated throughout the process.
Despite this, Heaslip claimed that the NGCB did not inquire about the geofencing implementation before the investigators attempted to trade. He further accused the NGCB of breaking federal law by falsifying information in their pursuit of a loophole.
The vendor in question, GeoComply, is a Nevada-licensed location verification company. Kalshi alleges that agents managed to bypass the restrictions by using an outdated version of the app that was not subject to geofencing.
In response to Kalshi’s claims, the NGCB dismissed them as “baseless,” emphasizing that Kalshi cannot deny its failure to meet the agreed-upon compliance deadline.