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The Nevada Gaming Control Board announced on Friday that it has reached a binding agreement with Kalshi to shut down all sports, election, and entertainment prediction contracts in the state.
The Board says the company must fully block Nevada users by August 12, 2026, or begin paying a $120,000‑per‑day penalty until the fix is complete.
The announcement follows months of friction between the regulator and Kalshi, after investigators continued to access restricted contracts from inside Nevada even though a court order had already barred the company from offering them.
NGCB described the new agreement as a way to “definitively stop Kalshi’s continued unlawful operation in Nevada,” making clear that the deadline and daily fines are meant to force compliance rather than leave room for further disputes.
Court order violations and how the Board forced a settlement
The Board’s announcement traces the dispute back to May 18, when the First Judicial District Court issued a preliminary injunction barring Kalshi from “offering or facilitating contracts on sports-, election-, or entertainment-related events within the State of Nevada.”
That order should have shut down Kalshi’s Nevada activity immediately. But according to the regulator, investigators “repeatedly were able to enter into the very contracts that Kalshi is prohibited from offering on its platform in Nevada.”
Those findings pushed the regulator to escalate. The Board moved to hold Kalshi in contempt of court, arguing that the company had violated a clear judicial order. Rather than face a contempt hearing, Kalshi agreed to negotiate.
The result was a detailed agreement filed with the court on July 23. In that filing, Kalshi “admits that Board investigators have been able to enter sports-, election- and entertainment-related event contracts from within the State of Nevada in violation of the Court’s order; details its process and timeline for full compliance with Nevada law; and agrees to a $120,000/day penalty if it fails to meet that timeline.”
Kalshi already working on geo-fencing solutions
Kalshi must not take immediate steps to implement a “robust, multi-source geofencing solution provided by a third-party commercial provider,” designed to block anyone inside Nevada from accessing prohibited contracts.
The company has already started the process and must finish it by August 12. It will also send periodic progress updates to the Board, giving regulators a way to monitor whether the promised changes are actually being delivered.
Board Chairman Mike Dreitzer said the deal ensures Kalshi will either comply or face consequences.
“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order. This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” he said.
Dreitzer added that “The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state and has successfully restricted the operation of all unlicensed prediction markets known to be operating in Nevada.”
The announcement also came on the same day when two Nevada congressmen, Rep. Steven Horsford and Rep. Mark Amodei, introduced a proposal aimed at shutting down sports event contracts on prediction markets.
