Kalshi Counters Nevada Regulator, Accusing It of Violating Federal Law

BlockBeats News, August 16th, according to Reuters, the prediction market platform Kalshi on Saturday accused the Nevada Gaming Control Board of violating federal law during an investigation into its geofencing measures. Previously, the regulatory body sought to impose a daily fine of $120,000 on Kalshi for allegedly failing to fully implement the geofencing solution as ordered by the court.

Court documents show that on the day after the relevant compliance deadline, Nevada regulatory investigators were still able to complete 9 transactions on the Kalshi mobile app using the local cellular network. Kalshi stated that the company has hired GeoComply, licensed by the local gaming regulator as required by the state, to provide geofencing services and has been continuously reporting progress to the regulatory body.

A lawyer for Kalshi claimed that Nevada investigators provided false residential addresses to the platform during the testing process, allegedly violating federal law, and at least one investigator circumvented Kalshi's own blocking measures.

In April this year, a Nevada judge issued a preliminary injunction prohibiting Kalshi from offering related derivatives trading in the state without a gambling license.