Nevada gaming regulators ask judge to find Kalshi in contempt of court

The Nevada Gaming Control Board has asked a Carson City judge to find a popular prediction market in contempt of court for ignoring a court order effectively banning it from operating within the state.

The board on Friday petitioned the First Judicial District Court to find KalshiEx LLC in contempt for not complying with a May 18 court order to geofence its website so that it cannot offer any sports-, election-, or entertainment-related event contracts to anyone located in Nevada.

“The court has required Kalshi to stop offering covered event contracts in Nevada,” Nevada Gaming Control Board Chairman Mike Dreitzer said in an emailed release. “We will continue to vigorously enforce Nevada law to safeguard gaming in our state.”

The board considers the offering of sports event contracts, along with certain other event contracts, to constitute wagering activity under Nevada statutes. The board has also determined that Kalshi’s operations are unlawful in Nevada and in violation of four NRS statutes.

Gaming regulators say they’re charged with regulating the gaming industry, through policy enacted by the Nevada Legislature, because of its economic and general welfare impact on the state and its residents.

Carson City District Judge Jason Woodbury gave Kalshi until May 4 to implement geofencing and or geolocation measures to prevent any user in Nevada from engaging in any activity or transaction deemed illegal under Nevada gaming laws as a result of the preliminary injunction he approved.

The judge said if Kalshi couldn’t meet the May 4 deadline it could request an extension, but he required that the company fully explain why.

“Any request for an extension shall include an explanation of the degree to which geolocation or geofencing measures have been implemented, the progress which has been made in regard to any implementation that has not yet been completed, the remaining tasks to be completed, and an estimate of the time necessary to complete those tasks,” Woodbury said.

Kalshi does not respond to media inquiries about legal matters.

The Control Board, meanwhile, has taken aim at other prediction markets and have made efforts to ban them from writing contracts.

Earlier this month, Woodbury granted the Control Board’s motion for a preliminary injunction blocking the operation of a Polymarket.

The injunction blocks QCX LLC, doing business as New York cryptocurrency-based Polymarket US, from providing its services in Nevada.

The Control Board has had similar success with a preliminary injunction against internet-centered Coinbase.