The Nevada Gaming Control Board has finalized a deal with Kalshi, mandating that the prediction market operator adhere to a court order by August 12, or incur a daily fine of $120,000.

This agreement stems from a preliminary injunction granted by the First Judicial District Court in Nevada on May 18, which bars Kalshi from providing or enabling specific contracts within the state. Investigators found they could repeatedly access unauthorized contracts on Kalshi’s platform, despite the existing court order, leading regulators to pursue a contempt ruling.

As part of this agreement, a hearing set for Wednesday has been cancelled.

Board Chair Mike Dreitzer stated that Kalshi has committed to swiftly initiate a comprehensive, multi-source geofencing solution from an external commercial vendor to restrict Nevada users from engaging in the forbidden contracts.

Kalshi has commenced the implementation of this geofencing system and must finalize it by August 12. Failing to meet this deadline will result in a $120,000 daily fee until full implementation is achieved. Additionally, the company will provide regular updates on its progress to the Board.

“This accord guarantees that Kalshi will adhere to Nevada law moving forward, or face significant repercussions,” Drietzer affirmed. “We will persistently enforce Nevada laws to protect our gaming landscape.”

Kalshi has consistently argued in federal court that it is under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state oversight, a position supported by the CFTC.

The Gaming Control Board indicated it has taken actions against other prediction markets recently and has effectively curtailed all identified unlicensed prediction market operators within Nevada.

The contempt filing suggested that Kalshi’s non-compliance with the preliminary injunction is inflicting ongoing damage to Nevada, its public funds, and its citizens.

“Daily, Kalshi collects hundreds of millions in bets on events such as the NBA Finals, Stanley Cup Finals, and FIFA World Cup. Meanwhile, it detrimentally impacts the gaming sector by refusing to adhere to the same regulations as its licensed sportsbook counterparts, who effectively geofence,” the filing stated.

“This situation is unacceptable,” it continued. “Given the Board’s investigation and Kalshi’s own acknowledgments confirming its breach of the court order, the court should find Kalshi in contempt. Kalshi will not understand otherwise.”