Kalshi Accuses Nevada Investigators of Breaking Federal Law to Collect $120K Daily Fines

TLDR

• Nevada’s gaming regulator is seeking $120,000 per day in fines from prediction market platform Kalshi over alleged geofencing failures
• Nevada investigators placed nine trades on Kalshi one day after a court-ordered geofencing deadline
• Kalshi says it hired a state-approved vendor and accuses investigators of misrepresenting their locations to bypass its system
• New York, Baltimore, and the CFTC have all taken separate legal action involving Kalshi
• The core dispute is whether prediction markets are federally regulated financial products or state-controlled gambling

Prediction market platform Kalshi is pushing back against Nevada’s gaming regulator after the state sought $120,000 in daily fines over claims the company failed to properly block Nevada users from trading certain contracts.

Nevada informed Kalshi it faces penalties for not complying with a geofencing order.

Kalshi has issued a letter in response saying it did comply and calling Nevada’s action an abuse of power.

Just your average Saturday in prediction-market land. pic.twitter.com/ZWsyixUETf

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