Kalshi Accuses Nevada Regulator of Violating Federal Law in Geofencing Dispute

Prediction-market operator Kalshi accused Nevada's gaming regulator of violating federal law after the state sought daily penalties of $120,000 over the company's alleged failure to comply with a geofencing order, Rajveer Singh Pardesi and Rishabh Jaiswal reported for Reuters.

Prediction-market operator Kalshi is challenging Nevada regulators over allegations that its platform failed to block users in the state. [Image": Kalshi X]

Nevada Gaming Control Board investigators placed nine trades on Kalshi's mobile application while connected to cellular networks in Nevada, a day after a court-ordered deadline for the company to have a complete geofencing system in place.

Kalshi said it had hired GeoComply, a vendor licensed by Nevada's gaming regulator at the state's request, and had kept state officials informed of its progress.

Kalshi's lawyers accused Nevada investigators of misrepresenting their residences and violating federal law.

They also alleged that at least one investigator circumvented the company's own blocking measures.

Those claims are disputed and should not be presented as established facts.

A Nevada judge issued a preliminary injunction in April barring Kalshi from offering certain contracts in the state without obtaining a gaming license. Nevada regulators subsequently sought $120,000-a-day penalties, arguing that Kalshi had not fully complied with the court order.