Kalshi and Nevada’s gaming regulator are accusing each other of wrongdoing as their long-running court fight shifts to whether the prediction market properly blocked trading inside the state.

The latest disagreement concerns an August 12, 2026 deadline requiring Kalshi to finish installing third-party geofencing in Nevada. According to The Nevada Independent, the gaming control board returned to court August 14, arguing Kalshi had failed to meet that requirement. Kalshi insists the technology was operating and says investigators got around the controls by providing misleading location information.

Nevada said the requirement followed three months of court-ordered restrictions and that Kalshi had specifically agreed to have an outside provider’s system ready by August 12.

“Kalshi has been under a court order for three months to geofence its operations to comply with Nevada law. Most recently, Kalshi agreed to a court order stating that Kalshi had to complete implementation of a geofencing solution from a third-party geofencing provider by August 12, 2026. Kalshi did not meet that deadline, so the Board went to court to enforce Nevada law. Kalshi’s accusations are baseless, and they cannot obscure the fact that Kalshi missed its agreed-upon deadline to comply with Nevada law. Kalshi’s consistent failures to comply with the court’s orders left the Board with no choice but to advise the court of Kalshi’s noncompliance.”

Kalshi says Nevada investigators bypassed newly installed geofencing

Kalshi offered a different explanation in correspondence concerning State of Nevada v. KalshiEX, LLC. It said it hired GeoComply, a provider licensed by the NGCB, after Nevada requested third-party geofencing. Engineers then integrated GeoComply’s technology while keeping regulators informed, according to Kalshi.

The company says Nevada raised no implementation questions before investigators tried trading August 13. Kalshi alleges investigators misstated their residence and that at least one deliberately bypassed controls that had already prevented trading.

After Nevada flagged those transactions, Kalshi says it made changes within hours. Those adjustments affected tens of thousands of users beyond Nevada, the company added.

Rick Heaslip, Kalshi’s Chief Regulatory Officer, publicly attacked the regulator’s approach.

“Kalshi went above and beyond to geofence Nevada as requested. We hired a state-approved vendor and updated Nevada every step of the way, with no response. Instead of engaging, they falsified information (breaking federal law) to hunt for a loophole and manufacture another legal grievance. We addressed it within hours, but they ran to court anyway.”

The disagreement follows months of courtroom battles. Nevada obtained a temporary restraining order in March blocking certain sports, election and entertainment contracts, followed by a May preliminary injunction. Regulators later sought contempt sanctions after investigators said they could still trade from Nevada.

Kalshi maintains its contracts are federally regulated financial products, while Nevada considers covered contracts wagering subject to state gaming rules. On July 1, the Nevada Supreme Court declined to pause the injunction while Kalshi’s appeal proceeds.

Kalshi also alleges Nevada has treated competitors differently by reaching agreements allowing them to offer sports event contracts in the state. It plans to oppose Nevada’s latest motion and seek attorneys’ fees tied to the filing.

Featured image: Kalshi / Canva

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