LAS VEGAS (KTNV) — Gaming regulators are asking a district court judge to punish the predictive platform Kalshi for allegedly defying a court order that bans event contracts in Nevada.
As Channel 13 previously reported, in February, the Ninth Circuit Court of Appeals ruled in favor of the Nevada Gaming Control Board that prediction market Kalshi can be banned from offering sports contracts in Nevada.
Nevada Attorney General Aaron Ford also filed a civil enforcement action in Carson City District Court to try to completely block Kalshi from operating in Nevada. In April, Judge Woodbury agreed to bar the company from offering sports, elections, and entertainment contracts, unless Kalshi obtains a gaming license
New court filings from earlier this month allege Kalshi did not comply with court orders and should be held in contempt of court.
"On April 3, 2026, the Court granted the BOARD a preliminary injunction and put KALSHI on notice that it had 30 days to use geofencing to stop offering or facilitating sports-, election-, and entertainment-related event contracts on its platform in Nevada," court filings read in part. "On May 18, 2026, the Court confirmed that KALSHI must geofence its customers so that those contracts are not available to customers within the geographic boundaries of Nevada. It is now June 3, 2026, and KALSHI has not implemented geolocation and geofencing technology that prevents all people in Nevada from buying the covered contracts."
Gaming regulators also state their investigators were still able to purchase covered event contracts in Nevada.
"Every day that KALSHI continues to operate hurts the State, its gaming industry, and the public," the filings read in part.
Gaming regulators are asking the court to impose sanctions for every day that Kalshi isn't in compliance with the court order, and that Kalshi be required pay all attorney fees and costs for the Nevada Gaming Control Board.
Channel 13 has reached out to Kalshi for comment on the new filings. As of the time this article was published, we have not heard back.
The Nevada Gaming Control Board has repeatedly stated its belief that offering these types of contracts constitutes wagering activity under state law and, as such, must be licensed in Nevada.
The Board notes it has "successfully restricted the operation of all unlicensed prediction markets that had been known to be operating in Nevada."
Nationally, there have been claims that prediction market traders are using insider information to profit from events.
Because of that, last week, Kalshi announced it would start collecting customer employment information for trading in certain markets where there is a heightened risk of insider trading.
The company stated it will also roll out risk scoring and add enhanced whistleblowing features.
"By implementing these new integrity measures, we continue to lead the industry on the issue of market integrity amongst federally regulated prediction markets," Robert DeNault, Kalshi's head of enforcement, stated in a press release.
There has been debate about who should regulate predictive markets and if it should be the states or the Commodity Futures Trading Commission.
Last week, the CFTC published a 267-page document outlining what kinds of contracts prediction markets like Kalshi and Polymarket can offer.
"The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation," CFTC chairman Michael Selig stated in a press release. "This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward."
You can read the full proposal below.