The Nevada Gaming Control Board (NGCB) has asked a district court to hold Kalshi in contempt for failing to comply with a judicial order against the offering of sports betting in the Silver State.
The new filing, submitted to the First Judicial District Court for the State of Nevada, accused Kalshi of failing to adequately geofence its offering and avoid making sports betting accessible via its platform to people located in the state.
The NCGB has requested the court issue both a finding of contempt and a fine, either in the form of “disgorgement of all ill-gotten gains” or $120,000 per day, respectively.
At the beginning of April, following a temporary 14-day measure, Judge Jason Woodbury granted a preliminary injunction against Kalshi sought by the NCGB, banning the platform from operating sports event contracts in the state without a betting licence.
Woodbury then amended this initial injunction on 18 May to include more specific language regarding the physical location of bettors and geofencing. References to “residency” were replaced with mentions of persons physically located “within the State of Nevada.”
Kalshi currently uses an in-house geofencing tool which some regulators deem ineffective.
The regulator accused the prediction markets provider of a deliberately “half-hearted” attempt at location processing, allowing it to continue offering event contracts in Nevada pertaining to sports, elections and entertainment.
Kalshi has previously argued in a New Jersey court that partnering with a third-party, lab-tested geolocation service provider would cost “up to tens of millions of dollars annually”.
The court filing read: “Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances and its citizens.
“Every day, Kalshi takes in hundreds of millions in wagers on such events as the NBA Finals, the Stanley Cup Finals and FIFA World Cup.
“At the same time, Kalshi is severely harming the gaming industry because it refuses to follow the same rules as its licensed sportsbook competitors who actually geofence.
“This is an intolerable state of affairs. In light of the board’s investigation and Kalshi’s own admissions that establish its violation of the court order, the court shall hold Kalshi in contempt. Kalshi will never get the message otherwise.”
Several states have filed civil suits against Kalshi for offering sports betting within their borders without the requisite licence, with one jurisdiction, Arizona, opting for the criminal charges route in March.
The post Nevada regulator requests Kalshi be held in contempt of court first appeared on EGR Intel.
The Nevada Gaming Control Board says investigators were able to buy sports betting contracts on Kalshi’s app for NBA playoff games, MLB games, a boxing match, a tennis match and a celebrity wedding, despite an injunction banning the app for people located in the state
The post Nevada regulator requests Kalshi be held in contempt of court first appeared on EGR Intel.