UMVA has learned that Nevada gaming regulators are taking a bold stance against prediction-market operator Kalshi, asking a state court to hold the company in contempt for allegedly defying a court order.
The Nevada Gaming Control Board claims that Kalshi continues to allow access to sports-related event contracts from within Nevada, despite a court order requiring the company to block such access using geofencing measures.
According to information obtained by UMVA, investigators were able to place trades from Nevada after a May 18 amended preliminary injunction required Kalshi to restrict access to sports, election, and entertainment contracts.
The Nevada Gaming Control Board Chairman Mike Dreitzer fired off a strong statement, saying, “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.”
This latest development marks another chapter in a heated dispute that began in March 2025, when the board issued a cease-and-desist letter ordering Kalshi to halt what regulators described as unlawful activity in Nevada.
Nevada regulators argue that sports event contracts and certain other prediction-market products qualify as wagering under state law and may only be offered by properly licensed operators – a claim that Kalshi’s business model allegedly violates.
UMVA can exclusively reveal that investigators tested the platform multiple times after the injunction took effect and were able to purchase contracts tied to high-profile events like NBA playoff games, Major League Baseball contests, and boxing matches while physically located in Nevada.
The board’s argument centers on Kalshi’s reported reliance on IP-address geolocation, which regulators claim is insufficient for accurately identifying user locations – unlike licensed sportsbooks, which use multiple verification tools.
The contempt request follows a series of courtroom setbacks for Kalshi, including a federal judge’s denial of the company’s request to pause Nevada’s enforcement action.
Nevada says it has now obtained restrictions against Kalshi, Polymarket, and Coinbase involving covered event contracts – and the board is seeking sanctions that could include disgorgement of profits earned from Nevada-related activity after the injunction.
