Nevada gambling regulator says it has now successfully restricted all known unlicensed prediction markets in the state
Kalshi is withdrawing its prohibited event contracts from Nevada under an agreement with the Nevada Gaming Control Board (NGCB).
The joint stipulation announced on Friday will see Kalshi implement geofencing technology to prevent customers in Nevada from trading certain prohibited event contracts, which include contracts on sports, elections and entertainment-related events.
The agreement between the NGCB and Kalshi comes after the Nevada regulator moved to hold Kalshi in contempt of court for violating a May court order requiring the company to implement geofencing in the state.
The joint stipulation acknowledges that despite Kalshi’s use of IP-based and residency-based trading blocks, state investigators have still been able to trade sports, election and entertainment contracts.
“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order,” said NGCB chairman Mike Dreitzer. “This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties.”
Kalshi has agreed to implement geofencing by no later than August 12, failing which it will pay the state $120,000 a day until the implementation is complete.
“We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” Dreitzer added. “The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state and has successfully restricted the operation of all unlicensed prediction markets known to be operating in Nevada.”