$120,000 a day is the penalty Kalshi accepted if it fails to stop Nevada users from entering sports, election and entertainment contracts by Aug. 12.
The agreement came after Nevada said investigators could still place banned contracts despite a May 18 preliminary injunction, prompting regulators to seek contempt sanctions.
Kalshi said it has begun installing a third-party geofencing system—similar to measures in Michigan—but will keep arguing in court that federally regulated prediction markets fall outside state jurisdiction.
Nevada says unlicensed prediction markets undercut taxed sportsbooks and lack safeguards such as age checks and problem-gambling protections, as federal lawmakers from the state push to ban sports and election contracts.