Kalshi agrees to halt Nevada wagers by Aug. 12 or face $120,000 daily fine
Kalshi agreed to fully block Nevada users from accessing its event contracts by August 12 or face $120,000 in daily fines. The Nevada Gaming Control Board announced the agreement after Kalshi admitted that people in the state could still access its contracts despite a May 18 preliminary injunction. The board called Kalshi's activity unauthorized gaming. Kalshi began offering sports event contracts nationwide, including Nevada, in early 2025.
The Nevada settlement turns Kalshi's federal preemption defense into a state-by-state retreat. Each geofencing loss shrinks the tradable market for Kalshi and its partner Robinhood, pressing them to build state-level compliance infrastructure they once assumed federal registration would avoid.
Traders holding contracts sold as nationally available face sudden voiding risk when states move faster than courts clarify the rules. The $120,000 daily penalty gives Nevada leverage most state regulators lack, accelerating the pattern of state-by-state crackdowns. Kalshi's appeal to the Second Circuit now carries the survival of its national model, but that court may not rule before more states force their own fences.
The Nevada settlement becomes Kalshi's fourth state-level geofencing capitulation, after judges in Michigan, New York, and Washington forced its hand, leaving the Second Circuit appeal as the platform's only path to a unified federal standard.