Nevada Seeks $120K Daily Fines From Kalshi Over Geofencing Failures
Summary
Nevada's gaming regulator is seeking $120,000 per day in penalties from Kalshi, alleging the prediction market operator failed to implement a complete geofencing solution by a court-ordered deadline. Investigators placed nine trades on Kalshi's mobile app while in Nevada after the deadline, according to a court filing. Kalshi disputes the claims, stating it hired GeoComply at the state's request and kept regulators updated, and accuses Nevada investigators of misrepresenting their residences and violating federal law. This escalates an ongoing legal battle that began with an April preliminary injunction barring Kalshi from offering contracts in Nevada without a gaming license. The dispute adds to a series of regulatory challenges for Kalshi, including a New York lawsuit and CFTC actions, though the company has continued to report strong trading volume growth.
Updates
· Finance Magnates — Nevada says investigators could still access contracts through an older app version not covered by the block; Kalshi says testers misrepresented residence and circumvented restrictions. A similar June contempt request also sought $120K/day but no fine was imposed.
This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.