{"id":74526,"date":"2026-06-16T07:17:43","date_gmt":"2026-06-16T07:17:43","guid":{"rendered":"https:\/\/gaming-awards.com\/NEWS\/?p=74526"},"modified":"2026-06-16T07:17:43","modified_gmt":"2026-06-16T07:17:43","slug":"nevada-sports-betting-regulators-seek-contempt-ruling-against-kalshi","status":"publish","type":"post","link":"https:\/\/gaming-awards.com\/NEWS\/nevada-sports-betting-regulators-seek-contempt-ruling-against-kalshi\/","title":{"rendered":"Nevada Sports Betting Regulators Seek Contempt Ruling Against Kalshi"},"content":{"rendered":"<p style=\"text-align: left;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-26252\" src=\"https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-300x200.jpg 300w, https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling.jpg 1024w, https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-250x167.jpg 250w, https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-405x271.jpg 405w, https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-60x40.jpg 60w, https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-638x427.jpg 638w, https:\/\/gaming-awards.com\/NEWS\/wp-content\/uploads\/2014\/12\/court-ruling-619x414.jpg 619w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Nevada sports betting regulators have escalated their dispute with prediction market platform Kalshi by seeking a contempt of court ruling. The Nevada Gaming Control Board (NGCB) has filed a request with the First Judicial District Court of the State of Nevada. The action stems from allegations that Kalshi violated a previous court order by allowing Nevada residents to access sports-related prediction contracts despite restrictions. Consequently, this case highlights the ongoing tension between state gaming regulations and federally approved prediction markets. The dispute centers on geofencing failures and raises critical questions about jurisdictional authority over sports betting operations.<\/p>\n<h4 style=\"text-align: left;\">Nevada Gaming Control Board Files Contempt Motion Against Kalshi<\/h4>\n<p style=\"text-align: left;\">Last Friday, the Nevada Gaming Control Board requested the First Judicial District Court to hold Kalshi in contempt for violating court orders restricting Nevada sports betting access.\u00a0The motion seeks penalties of at least $120,000 per day for each day Kalshi remains non-compliant.<\/p>\n<p style=\"text-align: left;\">The state court initially issued a preliminary order on April 3, which was affirmed through an amended order on May 18.\u00a0According to court filings, Kalshi has failed to comply with the amended order.\u00a0The board alleges the company is &#8220;flagrantly&#8221; flouting the order and has created &#8220;an intolerable state of affairs&#8221;.<\/p>\n<p style=\"text-align: left;\">The enforcement action followed a series of legal battles.\u00a0Earlier, the board issued a cease and desist letter when Kalshi began offering sports betting pools. Kalshi responded with a federal lawsuit and secured an injunction from U.S.\u00a0District Judge Andrew Gordon. In March, Nevada Judge Jason D.\u00a0Woodbury granted the board&#8217;s request for an injunction prohibiting Kalshi from accepting bets in Nevada.<\/p>\n<p style=\"text-align: left;\">Nevada remains the only state with an active, court-enforced ban against Kalshi.\u00a0Chairman Mike Dreitzer stated the board would &#8220;continue to vigorously enforce Nevada law to safeguard gaming in our state&#8221;.<\/p>\n<h4 style=\"text-align: left;\">How Kalshi&#8217;s Geofencing System Failed Nevada Sports Betting Restrictions<\/h4>\n<p style=\"text-align: left;\">The compliance failure centers on Kalshi&#8217;s inadequate geofencing implementation.\u00a0According to Nevada&#8217;s contempt motion, Kalshi spent only $190,000 on a homegrown solution that relies exclusively on internet protocol addresses.\u00a0Board investigators confirmed they can repeatedly access Kalshi&#8217;s platform to purchase sports, election, and entertainment contracts from Nevada.<\/p>\n<p style=\"text-align: left;\">Significantly, Kalshi&#8217;s assertions to the state court contradict statements made to federal court.\u00a0In a sworn declaration to the federal court, Kalshi&#8217;s head of markets stated that IP address-based solutions would not suffice, claiming effective geofencing requires triangulating users&#8217; locations using GPS and other methods.\u00a0The company also claimed it lacked in-house capacity and would need tens of millions of dollars annually for commercially available solutions.<\/p>\n<p style=\"text-align: left;\">Kalshi now presents the exact opposite position to the state court, asserting its homegrown solution effectively geofences Nevada users using only IP addresses.\u00a0Nevada characterizes this $190,000 system as &#8220;rudimentary, non-lab-tested and woefully inadequate&#8221;.<\/p>\n<p style=\"text-align: left;\">Carson City District Court Judge Jason Woodbury gave Kalshi until May 4 to implement proper geofencing measures.\u00a0The judge required any extension request to include detailed explanations of implementation progress, remaining tasks, and completion timelines.\u00a0Commercial geofencing solutions exist, but Kalshi refuses to use them, contending its homegrown approach meets requirements.<\/p>\n<h4 style=\"text-align: left;\">Federal vs. State Authority: The Legal Battle Over Prediction Markets<\/h4>\n<p style=\"text-align: left;\">The Nevada sports betting dispute reflects a nationwide jurisdictional conflict between federal and state regulators.\u00a0Sixteen states are involved in legal proceedings against prediction market platforms. The Commodity Futures Trading Commission asserts exclusive authority over these platforms, arguing event contracts qualify as federally regulated swaps rather than gambling products subject to state oversight.<\/p>\n<p style=\"text-align: left;\">CFTC Chairman Michael Selig has sued six states to defend what the agency describes as its exclusive jurisdiction.\u00a0Wisconsin, New York, Connecticut, Illinois, Arizona, and Minnesota face federal lawsuits after taking enforcement actions against prediction market operators.\u00a0Meanwhile, a bipartisan coalition of 41 state attorneys general recently urged the CFTC to reaffirm that jurisdiction over sports gambling belongs to the states.<\/p>\n<p style=\"text-align: left;\">Federal courts have reached conflicting conclusions.\u00a0On April 6, 2026, the Third Circuit ruled 2-1 that New Jersey gaming regulators cannot enforce state gambling laws against Kalshi&#8217;s sports-related event contracts. The majority held that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over trading on designated contract markets, preempting state gambling laws. On the other side, the U.S.\u00a0District Court for the District of Maryland denied Kalshi&#8217;s preliminary injunction, finding Congress lacked a clear and manifest purpose to preempt state gambling laws when it enacted the Dodd-Frank Act.<\/p>\n<p style=\"text-align: left;\">This circuit split indicates the litigation could reach the Supreme Court.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nevada sports betting regulators have escalated their dispute with prediction market platform Kalshi by seeking a contempt of court ruling. The Nevada Gaming Control Board (NGCB) has filed a request with the First Judicial District Court of the State of Nevada. The action stems from allegations that Kalshi violated a previous court order by allowing [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":67372,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3,8,18,132],"tags":[],"class_list":["post-74526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-headlines","category-igaming","category-latest","category-n-america","category-sportsbetting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Nevada Sports Betting Regulators Seek Contempt Ruling Against Kalshi - iGaming Post<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gaming-awards.com\/NEWS\/nevada-sports-betting-regulators-seek-contempt-ruling-against-kalshi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nevada Sports Betting Regulators Seek Contempt Ruling Against Kalshi - iGaming Post\" \/>\n<meta property=\"og:description\" content=\"Nevada sports betting regulators have escalated their dispute with prediction market platform Kalshi by seeking a contempt of court ruling. 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