Nevada Gaming Control Board Seeks Contempt Ruling Against Kalshi
The Nevada Gaming Control Board is asking a state court to hold Kalshi in contempt for failing to follow a court order that requires the company to block Nevada users from certain event contracts.
The Board says Kalshi did not properly geofence its platform after a May 18, 2026 order told the company to stop offering sports, election, and entertainment-related contracts to people located in Nevada.
The company recently expanded, adding arts markets to its offerings. The new offering allows users to trade event contracts tied to real-world outcomes at major auction houses like Sotheby’s, Christie’s, and Phillips.
Nevada Says Kalshi Still Has Access Issues
According to the Nevada Gaming Control Board, users in Nevada can still access and trade restricted contracts on Kalshi’s platform. State investigators reportedly confirmed that the blocked markets were still reachable, which led regulators to seek contempt penalties.
Board Chairman Mike Dreitzer said Nevada will keep enforcing its gaming laws to protect the state’s gaming industry. The Board is also asking the court to impose significant monetary fines.
“The Court has required Kalshi to stop offering covered event contracts in Nevada. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” Dreitzer said.
Why Nevada Says the Contracts Count as Gambling
Nevada views many of Kalshi’s event contracts as wagering under state law, especially those tied to sports. Because of that, the state says Kalshi must have a Nevada gaming license and follow strict gaming rules.
The Board says Kalshi is violating several Nevada laws, including NRS 463.0193, NRS 463.01962, NRS 463.160, NRS 463.350, NRS 465.086, and NRS 465.092. The state argues that if a product works like betting, then it should be regulated like betting.
Kalshi’s Legal Argument
Kalshi says its platform is not gambling. The company argues that it offers federally regulated event contracts under the Commodity Futures Trading Commission (CFTC), and that federal law should override state gaming rules.
That legal fight is the heart of the case with the Nevada Gaming Control Board. Nevada says the contracts are illegal wagering. Kalshi says they are financial products.
This action is part of a wider regulatory push against prediction markets that offer sports and political contracts in certain states.
Kalshi has faced similar challenges elsewhere, including a temporary ban on sports contracts in Massachusetts that is now on hold during appeal, as well as criminal charges in Arizona filed around the same time. Tribal leaders have also voiced concerns about the industry.
They have also questioned the CLARITY Act and the power it gives the CFTC.
Timeline of the Dispute
Here is how the case has developed:
- Early 2025 to 2026: Nevada issued cease-and-desist demands.
- March 20, 2026: A Nevada court issued a temporary restraining order.
- April 3, 2026: The court granted a preliminary injunction.
- May 18, 2026: The court ordered Kalshi to geofence Nevada users.
- June 12, 2026: The Nevada Gaming Control Board filed its contempt motion.
This latest move raises the stakes because the case is now about possible penalties, not just compliance.
Why This Case Matters
This case could affect the future of prediction markets in the U.S. Nevada is defending its licensed gaming system, while Kalshi is testing how far federal regulation can go in this space.
The outcome may also influence other states dealing with sports event contracts, online trading platforms, and the line between gambling and financial products.
What Happens Next
The Nevada Gaming Control Board will have to wait it out. The court will decide whether Kalshi violated the order and whether fines should be imposed. Kalshi is expected to challenge the contempt claim.
For now, the case remains active and could become an important test for prediction market regulation.