Prediction market operator Kalshi hits back at Nevada regulator over geofencing fine

On August 15, prediction market operator Kalshi responded to a Nevada regulatory fine, accusing the governing body of violating federal law. The Nevada gaming regulator had imposed daily penalties of $120,000 over Kalshi's alleged non-compliance with a geofencing order. Despite the deadline for Kalshi to have a complete geofencing solution in place, board investigators successfully placed nine trades on the firm's mobile application on the day, according to a court filing seen by Reuters.

Kalshi stated it had hired GeoComply, a vendor licensed by Nevada's gaming regulator at the state's request, and maintained regular communication with authorities. However, Nevada investigators were accused of misrepresenting their residences to Kalshi, which violated federal law. At least one investigator even circumvented the company's own blocking measures.

A judge in Nevada had previously issued a preliminary injunction in April, barring Kalshi from offering such contracts in the state without acquiring a gaming license. As of the time of the report, the Nevada courts had not yet commented on the matter.