Kalshi to stop offering prohibited contracts in Nevada on August 12

• Kalshi is set to start geofencing customers in Nevada from August 12, excluding prohibited trades
• The decision comes after a joint consideration between the company and the NGCB
• Kalshi has agreed to comply, risking a $120,000-per-day fine

Kalshi is withdrawing from Nevada after the prediction market platform reached an agreement with the Nevada Gaming Control Board (NGCB), marking the end of a month-long legal saga that saw the platform pitted against local regulators over a disagreement in the interpretation of gambling laws.

NGCB and Kalshi agree - prediction market platform to stop offering prohibited event contracts

The prediction market platform was previously facing a $120,000 fine per day if it did not agree to comply with the NGCB.

To make sure that it complies with the request, Kalshi will begin geofencing in the Silver State from Wednesday, August 12, specifically to prevent customers from placing trades on sports event contracts, entertainment events, or election races.

This new settlement comes after the NGCB stipulated that Kalshi had been in contempt of a previous court order from May to implement geofencing back then.

According to Mike Dreitzer, NGCB Chairman, Kalshi was ordered at the time to stop offering event contracts in Nevada, and also had this to say on the current situation with the company:

"This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties."

The NGCB and Kalshi announced the agreement on July 24, 2026. "The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state and has successfully restricted the operation of all unlicensed prediction markets known to be operating in Nevada,"Dreitzer added, reiterating the regulator’s stance on prediction markets.

Tax them or block them - no easy way for prediction markets

Kalshi has taken months to try and fight back against the local attempts to be turfed out of the Silver State, and has ultimately failed to hold its own. Other states are also attempting something similar, but some major jurisdictions are acquiescing that the legal tug-of-war may not be sustainable.

For example, New Jersey and Pennsylvania are also pushing back against the sector, but there are also attempts to tax the current prediction markets by single-digit percentages to start raking in state revenue from the vertical.

While prediction markets have been loath to comply with gaming laws, they may be more open to the idea of being taxed to reach a middle ground with local regulators.

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