Inside Gaming: Nevada regulators seek $120K a day in fines from Kalshi

The Nevada Gaming Control Board is seeking $120,000 a day in fines against prediction market Kalshi, alleging the company failed to comply with a judge’s order to stop offering sports, election and entertainment event contracts in Nevada by an Aug. 12 deadline.

The board made the allegation in a late Friday court filing in Carson City after state gaming investigators said they were able to purchase multiple event contracts in the prohibited categories while physically in Nevada.

Kalshi had agreed in July to implement “a robust, multi-source geofencing solution provided by a third-party commercial provider” to prevent people in Nevada from accessing its platform. The company used GeoComply, a Nevada-licensed technology provider, to implement the system.

But when gaming agents notified Kalshi about the trades, the company said the investigators were using a “previous version” of its app that was not subject to geofencing, according to court documents.

Kalshi attorneys said in a Friday letter to the board that the investigators were able to place trades only after misrepresenting their residence to the company and, in at least one instance, actively working to circumvent restrictions that had blocked the investigator from trading.

Kalshi General Counsel Rick Heaslip said the company had complied with the state’s request and accused regulators of deliberately trying to find a violation.

“Kalshi went above and beyond to geofence Nevada as requested. We hired a state-approved vendor and updated Nevada every step of the way, with no response,” Heaslip said. “Instead of engaging, they falsified information (breaking federal law) to hunt for a loophole and manufacture another legal grievance. Even then, we addressed it within hours, but they ran to court anyways.”

A Kalshi spokesperson called the board’s motion “ridiculous” and said the company would fight it.

“Kalshi used a state-approved company to implement geofencing in Nevada, updated the state every step of the way, and promptly addressed their issues,” the spokesperson said. “This motion is ridiculous and we will fight it.”

The dispute comes as the state, Kalshi and two other prediction-market companies await a ruling from the 9th U.S. Circuit Court of Appeals that could determine whether the companies can continue offering event contracts in Nevada.

From the Marina to the Boardwalk

Tom Pohlman, a veteran Atlantic City casino executive, is taking over the top spot at one of the Boardwalk’s most famous addresses. Pohlman announced Monday he has accepted the role of president of Bally’s Atlantic City.

“Standing at the legendary intersection of Park Place and the Boardwalk, Bally’s is a property with deep history and tremendous potential,” Pohlman said Monday morning. “I’m excited to embark on this new chapter, meet my Bally’s family and welcome all of our incredible guests.”

Pohlman spent 15 years as general manager of Golden Nugget Atlantic City before stepping down in May. He was the longest-serving general manager among Atlantic City’s nine active casinos. A UNLV graduate, Pohlman has more than 25 years of gaming-industry experience and previously served as senior vice president and general manager of Golden Nugget Laughlin.

National Fantasy Football Draft Day

Circa will host an official proclamation of Aug. 21 as National Fantasy Football Draft Day on Friday at Stadium Swim.

The ceremony, presented by Fantasy Sports Entertainment & Productions, is part of an inaugural Draft Nation three-day festival at the downtown Las Vegas resort from Thursday to Saturday celebrating 50 million fantasy football players across the country.

The event will feature hundreds of live poolside drafts at Stadium Swim and an array of fantasy football analysts and celebrities, including former NFL players Adrian Peterson, Earl Thomas and Jeff Garcia, as well as actors Dean Cain and Thomas Everett Scott.

“Fantasy football is an undeniable pillar of modern American sports culture. As players, we have treated draft weekend like a national holiday for decades,” said Ian Ritchie, co-founder of Draft Nation. “By formalizing August 21 on the National Day Calendar, we are giving a massive community of enthusiasts a dedicated date to honor the absolute best part of the season: the draft.”

The weekend also will feature the inaugural Fantasy FootBALL gala. Tickets are available at draft-nation.com.