Nevada Gaming Board Seeks Daily Fines Against Kalshi for Geofence Breach
- The Nevada Gaming Control Board (NGCB) filed a request on June 12 to hold Kalshi in contempt for not adhering to a May 18 order to geofence its platform from Nevada residents.
- Board investigators purchased prohibited event contracts, including sports and election markets, while physically located in Nevada.
- Nevada seeks a penalty of $120,000 per day, calculated as one-fiftieth of Kalshi’s estimated daily fee revenue, for each day the geofence is ineffective.
- Kalshi used an internal IP-based system for geofencing instead of an established provider, which was deemed inadequate by the state.
- The NGCB argues that proper geofencing is standard practice and not prohibitively expensive, contrary to Kalshi’s claims.
Kalshi faces potential fines due to alleged failures in preventing Nevada residents from accessing banned market contracts through its platform. The NGCB’s actions highlight ongoing compliance challenges within the legal framework governing prediction markets in the U.S.
The NGCB’s demand for $120,000 daily fines underscores the severity of regulatory breaches related to online gaming and prediction markets within Nevada’s jurisdiction. (Source)
