Kalshi agrees to geofence sports contracts in Nevada
Kalshi has agreed to use third-party geofencing technology to block Nevada residents from accessing its sports, politics, and entertainment event contracts, according to a court filing dated July 27. Nevada regulators sought court intervention after Kalshi's initial IP-based restrictions proved insufficient. The platform and partner Robinhood had offered sports event contracts nationwide, including Nevada, in early 2025. The state viewed prediction markets as a threat to its regulated sports betting industry.
Each state settlement shrinks the territory where Kalshi can operate under its CFTC registration alone. The Nevada deal removes a major market and previews how other states with established sports betting regimes may respond. Traders holding contracts they understood as federally protected now face geofencing risk spreading across jurisdictions.
For Polymarket, the identical exposure means every state win against Kalshi maps onto its own legal trajectory. The Second Circuit appeal remains both platforms' best shot at restoring a single federal shield, but that court may not act before more states follow Nevada's path. Kalshi's window for a unified national strategy compresses with each new front.
The Nevada geofence settlement becomes Kalshi's fourth state concession this month, joining defeats in New York, Michigan, and Washington that together erode its federal preemption defense before the Second Circuit rules.