Kalshi loses bid to pause Nevada geofencing order
A Nevada court rejected Kalshi's request to pause a state geofencing order on July 2. The ruling means Kalshi must continue blocking Nevada residents from accessing its sports, election, and entertainment event contracts while the underlying case proceeds. The court denied immediate relief but left the merits of the dispute open. Kalshi is already fighting parallel state restrictions elsewhere and appealing a separate federal injunction loss in New York.
The Nevada ruling strips Kalshi of interim protection in a second jurisdiction, forcing immediate operational changes without waiting for a final merits decision. The platform must now maintain geofencing blocks that cut off a state-level user base while burning legal fees on multiple fronts. Each injunction loss weakens Kalshi's negotiating position in every other active case; state attorneys general can cite denied relief to demand settlement or broaderblocks.
The platform's Second Circuit appeal in the Torres case faces longer odds as courts show consistent reluctance to override state enforcement pending full litigation. Kalshi must choose between expensive market-by-market compliance or risking contempt penalties for any geofencing failure. Polymarket faces identical exposure as the preemption shield cracks in federal and state courts alike.