Prediction markets platform Kalshi sent Netflix a cease-and-desist letter on Friday, accusing the streaming service of showing fabricated wagers in the documentary InstaDocs: The Prediction Games, which premiered on Sunday. The trailer shows a $5,000 bet on Spain winning the World Cup, allegedly placed through Kalshi on 19 July in Las Vegas. The company claims the betting slip is fake: a Nevada court banned it from accepting wagers on sports, political and entertainment events in the state back in March.
Kalshi marketing chief Brandon Beckhardt called the film 'sensationalised fiction', saying the slip does not match the platform's interface. Netflix responded that it upholds 'the highest standards of journalistic integrity', and that all wagers are the business of users and the apps they use.
But one day before sending the Netflix letter, Kalshi admitted in Nevada court that it had violated the ban itself. A state investigator managed to place eight trades between 28 May and 1 June. Initially Kalshi only blocked registration from Nevada addresses, but did not use geoblocking. The company is now required to implement it by 12 August or face a $120,000 daily fine. Nevada Gaming Control Board chair Mike Dreitzer said he would 'vigorously enforce state law'.
The bans are piling up. Michigan extended its Kalshi ban with a $500,000 daily penalty, Washington obtained a court injunction, and New York may be next. Attorney Daniel Wallach noted that if the appeals court denies Kalshi's emergency motion, the state where the company is headquartered and which leads US sports betting handle will block it within 90 days.
