Nevada seeks contempt order against Kalshi over alleged geofence violation
Nevada gaming regulators have filed a motion seeking a contempt order against prediction market platform Kalshi, alleging it openly violated a court's Amended Preliminary Injunction issued May 18th by failing to geofence Nevada users. Reports surfaced that Kalshi spent approximately $190,000 on a proprietary geofencing system characterized as rudimentary, non-lab-tested, and inadequate, with testing conducted by asking family and friends in Nevada to attempt placing wagers. California is also ramping up its legal efforts against the company. The regulatory action marks an escalation in Nevada's enforcement push against the CFTC-registered platform.
Kalshi now faces contempt exposure in Nevada while defending parallel enforcement actions in Wisconsin, New Mexico, Rhode Island, and Minnesota. Each adverse ruling arms state regulators elsewhere with precedent to force geofencing or seek contempt.