Kalshi has challenged Nevada’s gaming regulator over $120,000 in daily penalties tied to alleged failures to block users in the state.
Reuters reported that the prediction-market operator says Nevada investigators bypassed its location controls after the state imposed stricter geofencing requirements. Kalshi argues the testing violated federal law.
Kalshi Disputes Nevada Enforcement
Nevada investigators placed nine trades through cellular networks inside the state, a day after a court-ordered deadline for Kalshi to strengthen its geofencing.
Kalshi hired GeoComply, a Nevada-approved location provider, to meet the state’s requirements. The company also says it kept regulators informed throughout the process.
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Rick Heaslip said Kalshi “went above and beyond to geofence Nevada as requested.” He accused investigators of using false information during the tests.
Prediction Markets Face Scrutiny
Nevada wants to stop residents from trading certain event contracts without a state gaming license, while Kalshi argues that federal law governs its markets.
The dispute follows an April Nevada ruling that blocked certain Kalshi contracts without a state license.
The CFTC is separately reviewing “mention markets” on prediction platforms. Kalshi removed sports-related markets during the inquiry.
Mention markets generated about $3.3 million in Kalshi trading volume last month, adding to concerns over manipulation and regulatory oversight.
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