Prediction market platform Kalshi has accused Nevada Gaming Control Board (NGCB) investigators of breaking federal law by attempting to bypass the state's geofence. The regulator is seeking daily fines of $120,000 for non-compliance with a court order.
NGCB filed a motion on 14 August claiming Kalshi failed to meet a court requirement to stop accepting wagers on sports, entertainment and elections in Nevada. Investigators placed nine trades through the mobile app the day after the 12 August deadline. The regulator requested daily penalties and reimbursement of legal costs.
Kalshi responded in a letter to NGCB: investigators bypassed the block because they misrepresented their residence and used an old version of the app not covered by geofencing. The company's general counsel Rick Heaslip said Kalshi hired a state-approved vendor, GeoComply, and informed the regulator at every stage but received no questions before the compliance check.
NGCB called the accusations 'baseless' and said Kalshi failed to meet the agreed deadline. The regulator insists on systematic non-compliance with court orders.
The dispute began in March 2025 when Nevada demanded Kalshi cease operations without a licence. The company filed suit and initially secured a temporary restraining order against the regulator, but the court reversed the decision in November. An appeal is pending in the Ninth Circuit. In February 2026 Nevada filed a civil case against Kalshi, securing an injunction in April.
Outlet InGame found a similar problem in Michigan: an old version of the Kalshi app allowed users to bypass geofencing. The company does not require mandatory app updates. The court must now decide whether Kalshi failed to implement protection or investigators deliberately circumvented a working system.
