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NGCB calls on First Judicial District Court to hold Kalshi in contempt

The Nevada regulator considers the offering of sports event contracts as wagering activity and previously stated operators such as Kalshi must be licensed to conduct business in the state.

2 min read
NGCB calls on First Judicial District Court to hold Kalshi in contempt
Key Points
NGCB Chairman Mike Dreitzer confirmed the Board will continue to ‘vigorously enforce’ state law against Kalshi
The Board alleged that Kalshi has not complied with the court’s May 18 order to geofence Nevada operations

The Nevada Gaming Control Board (NGCB) has submitted a request to the First Judicial State Court to hold Kalshi in contempt over the operator’s alleged failure to implement geofencing measures for its prediction markets offering. 

“The Court has required Kalshi to stop offering covered event contracts in Nevada. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” NGCB Chairman Mike Dreitzer said. 

According to the NGCB, Kalshi has failed to comply with the court’s previous order to geofence all Nevada operations, originally ruled on May 18. The NGCB requested the court enter a finding of contempt and impose “significant” monetary penalties against Kalshi for violating the order. 

The Nevada regulator considers the offering of sports event contracts as wagering activity and previously stated operators such as Kalshi must be licensed to conduct business in the state.

On April 29, Nevada District Judge Jason Woodbury expanded the preliminary injunction request he previously approved on April 6 to prohibit Kalshi from offering sports-, entertainment- and election-related event contracts to residents.

As set in the ruling from April 6, Kalshi had until May 4 to implement geofencing or geolocation measures in Nevada to prevent residents from engaging in any activity or transaction which is currently illegal under state gaming laws.

Kalshi maintained the ability to request an extension to the deadline if geofencing measures were unable to be met, but would have been required to submit a full explanation to Woodbury as to why the extension was necessary.

The NGCB also arrested one suspect linked to suspicious sports wagering activity involving the Fresno State men’s basketball program and a player’s intentional underperformance during a January 7, 2025 matchup on June 12. 

An investigation conducted by the Nevada regulator unveiled the alleged conspiracy, which involved former and current associates connected to collegiate basketball programs.

Good to know

The NGCB officially completed its regulatory modernization initiative originally launched in July 2025, featuring enhancements to technology and anti-money laundering requirements issued on June 9

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