Late last week, Nevada and California initiated separate legal actions against prediction market platform Kalshi. The measures follow a court order requiring the company to restrict trading access for users within Nevada.
The Nevada Gaming Control Board requested the First Judicial District Court to hold Kalshi in contempt for non-compliance. The original preliminary order was issued on 3 April, with an amended version released on 18 May. Court filings state the company has not adhered to the amended directive.
The state seeks daily penalties of at least $120,000 for each day of continued non-compliance. NGCB Chairman Mike Dreitzer stated, "We will continue to enforce Nevada law to safeguard gaming in our state."
Technical Implementation and Multistate Coalition
Kalshi currently limits access by filtering internet protocol addresses rather than implementing jurisdiction-wide geofencing. According to the filings, this IP-based method costs $190,000 and relies on location data that court documents describe as variable. The platform cites implementation costs and federal regulations requiring open access as reasons for the current setup. On the same day, the office of California Attorney General Rob Bonta announced participation in a coalition of 37 attorneys general. The group filed an amicus brief opposing Kalshi in a lawsuit currently before the US Court of Appeals for the Sixth Circuit.This represents the seventh multistate filing by California regarding prediction markets. The state previously joined a similar brief for a consolidated Tennessee case two weeks earlier. Last week’s public disclosure marks the first time these filings have been announced.
The Nevada ruling remains the only court order in the United States to block Kalshi from operating within a specific jurisdiction.