Nevada gaming board asks court to hold Kalshi in contempt over geofencing
The Nevada Gaming Control Board asked a state court to hold Kalshi in contempt of court, alleging the CFTC-regulated prediction market platform continues to offer event contracts to users located in Nevada despite a prior judicial order requiring it to stop. The regulator filed the motion on June 12 in Carson City's First Judicial District Court, claiming Kalshi's geofencing technology has failed to keep its contracts out of the state. A Kalshi spokeswoman said the issue was a technology glitch. The board's chairman, Mike Dreitzer, signed the request. The push follows a February ruling by the Ninth Circuit Court of Appeals in a related case favoring the Nevada Gaming Control Board.
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.
The contempt motion against Kalshi lands one week after the same Nevada court granted a preliminary injunction blocking Polymarket statewide, showing the regulator is systematically pressing both major CFTC-registered platforms to geofence the state.