Kalshi Accuses Nevada Regulator of Federal Violations Over $120,000-a-Day Geofencing Penalties
Updated
Updated · Yahoo Finance · Aug 15
Kalshi Accuses Nevada Regulator of Federal Violations Over $120,000-a-Day Geofencing Penalties
3 articles · Updated · Yahoo Finance · Aug 15
Summary
Kalshi said Nevada gaming investigators violated federal law after the regulator sought $120,000 in daily penalties over the company's alleged failure to fully geofence users in the state.
Nine trades were placed on Kalshi's mobile app from Nevada cellular networks a day after a court deadline for a complete geofencing solution, according to a court filing reviewed by Reuters.
Kalshi said it hired GeoComply at the state's request, kept Nevada updated, and argued investigators misrepresented their residences to gain access, with at least one allegedly bypassing Kalshi's own blocking measures.
The dispute stems from an April preliminary injunction barring Kalshi from offering contracts in Nevada without a gaming license, extending a broader fight over whether prediction markets fall under state gaming oversight.
Why is Nevada demanding $120,000 a day from Kalshi after investigators allegedly traded from inside the state despite a geofencing order?
If Kalshi hired a Nevada-licensed geolocation vendor, why does the state still say its blocking system failed—and what standard counts as compliance?
Is the Kalshi-Nevada fight really about nine trades, or about who controls prediction markets in America: gaming regulators or federal market overseers?