Nevada seeks contempt order against Kalshi over alleged geofencing breach
Nevada regulators filed a motion asking a court to hold Kalshi in contempt, alleging the CFTC-regulated prediction market platform violated a preliminary injunction that required geofencing restrictions. The state claims Kalshi breached the court order's terms. The motion escalates the ongoing legal battle between Nevada and Kalshi over state authority to restrict event contract trading. Separately, Kalshi asked a federal court to dismiss a lawsuit brought by four New Mexico tribes challenging Kalshi's sports prediction markets, arguing federal law gives the CFTC exclusive authority over the matter.
Kalshi now faces contempt sanctions in Nevada that could force immediate geofencing or platform shutdown in that state. The ruling also tests whether state courts will let CFTC-registered exchanges operate nationwide or allow patchwork state-level restrictions.
Fits into the broader pattern of four states now fighting CFTC-registered platforms on dual federal and state tracks, alongside CFTC's own suit to block New Mexico's gambling enforcement against Kalshi and Polymarket.