NGCB Seeks Contempt Ruling Against Kalshi in Nevada Court Over Alleged Geofencing Failures

The Nevada Gaming Control Board (NGCB) has asked a state court to hold prediction markets platform Kalshi in contempt, saying the company has not complied with a May 18 order barring it from offering sports betting in Nevada. For high-risk operators, the point is not just the legal headline: this is another reminder that geofencing, licensing, and product classification still decide who can operate where.

1. The NGCB filed in Nevada’s First Judicial District Court and alleged that Kalshi failed to implement the required geofencing measures for its operations. The regulator says Kalshi has continued offering covered event contracts despite the court order prohibiting sports betting in the state.
2. According to the filing, the company is taking in hundreds of millions of dollars in wagers on events such as the NBA Finals, Stanley Cup Finals, and FIFA World Cup while not following the same geofencing requirements imposed on licensed sportsbooks. The NGCB says that creates a competitive disadvantage for regulated operators and undermines Nevada’s gaming industry.
3. The regulator is asking the court to hold Kalshi in contempt and impose substantial financial penalties for the alleged violations, including either forfeiture of all profits earned through the violations or fines of $120,000 per day.
4. Recently appointed board chair Mike Dreitzer said the court had ordered Kalshi to stop offering covered event contracts in Nevada and that the NGCB would continue to aggressively enforce state law to protect the integrity of Nevada’s gaming industry.
5. The NGCB also said sports event contracts, and certain other event-based contracts, qualify as wagering under Nevada law and therefore require licensing and regulatory oversight. In Dreitzer’s words, Nevada law treats gaming as a critical pillar of the state’s economy and public welfare, which is why it remains subject to licensing, regulation, and oversight.

Kalshi has also been in the news for its deal with global sports data company Sportradar, which has sparked speculation about what it could mean for sports betting. For anyone watching high-risk payments and gaming, though, the Nevada filing is the cleaner signal: courts and regulators are still prepared to test whether a product is betting, and whether the operator has done the unglamorous compliance work to keep it out of restricted jurisdictions.