The Ninth Circuit Court of Appeals ruled that Nevada can apply its gaming laws to Kalshi. Nevada’s congressional delegation welcomed the decision, while analysts said the legal dispute would continue.
The ruling lets Nevada apply its gaming laws to Kalshi, though analysts expect the dispute to continue.
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Nevada Gaming Control Board agents filed a nine-count complaint against Sry Industries LLC, which operates Off The Rails in Lovelock, Nevada, alleging 19 recurring violations found in a review covering 1 September 2023 to 31 January 2026. The complaint says the casino failed to meet accounting, reporting, internal-control and other requirements; chairman Michael Dreitzer declined its owner’s request to surrender the licence, allowing disciplinary proceedings to continue.
Nevada is seeking daily fines against Kalshi over compliance with a court-imposed geofencing deadline of 12 August. Kalshi alleges investigators gave false residency information and deliberately bypassed its trading restrictions, accusing regulators of violating federal law.
NGCB asked a Carson City court on Friday to impose $120,000 daily fines on Kalshi for allegedly missing an August 12 deadline to block sports, election and entertainment bets in Nevada, citing The Nevada Independent. Investigators said they bought contracts within Nevada. Kalshi disputed the allegations, accused investigators of circumventing its restrictions and said it resolved the issue within hours.
Arkansas has sued Kalshi in Independence County Circuit Court, alleging that its event contracts amount to gambling offered to residents without a state licence. The complaint seeks consumer restitution, civil penalties, taxes and an injunction; the amounts have not been determined, and the allegations have not been assessed by a judge. Kalshi has not publicly responded to this complaint.
The CFTC said on 5 November that registered designated contract markets must remove domestic geographic restrictions that conflict with its fair-access requirements within 30 days. Exchanges must also ensure partner intermediaries comply, or explain in writing why they cannot; the guidance comes amid state court orders requiring restrictions in several states.
The CFTC said on 5 November that registered prediction market operators must unblock geoblocked states within 30 days. Under its new interpretative guidance, designated contract markets that cannot comply may instead explain in writing why they cannot.