The Supreme Court of Nevada has denied Kalshi’s emergency motion for stay, concluding the operator’s attempt to avoid implementing geolocation measures which would cost “up to tens of millions of dollars annually” according to Head of Markets Xavier Sottile.
As part of the ruling handed down on July 1, a full-day evidentiary hearing will also be held on July 16 to determine whether Kalshi will be held in contempt for violating the preliminary injunction.
Carson City District Court Judge Jason Woodbury approved a preliminary injunction request from the Nevada Gaming Control Board (NGCB) after hearing over two hours of testimony from both parties in the First Judicial District Court on April 6.
Kalshi originally 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.
On June 15, however, the NGCB 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.
The NGCB requested the court enter a finding of contempt and impose “significant” monetary penalties against Kalshi for violating the order.
According to the Supreme Court’s ruling, Kalshi's assertions to the Nevada state court "are directly contrary to what it told the federal court about what would be required for an effective geofencing solution.”
A key issue set to be evaluated at the July 16 evidentiary hearing will be whether Kalshi took reasonable steps to comply with the preliminary injunction order.
The NGCB released the state’s total gaming activity for May 2026 on June 29, as operators in Nevada combined to generate nearly $1.4bn of gambling revenue, equating to an increase of 7.4%
