US Markets
Home›US Markets›M&A & Deals›Kalshi challenges Nevada gaming regulator after geofen…
Kalshi challenges Nevada gaming regulator after geofencing penalties push
The dispute follows a court filing alleging Nevada investigators placed nine trades on Kalshi while connected to cellular networks in Nevada after a geofencing deadline.
Kalshi, a prediction market operator, is pushing back against Nevada’s gaming regulator after the state sought daily penalties of $120,000 a day over the company’s alleged failure to comply with a geofencing order, according to a Reuters report.
Kalshi said board investigators were able to successfully place nine trades on its mobile application while connected to cellular networks in Nevada, one day after a court-ordered deadline for the company to have a complete geofencing solution in place, as described in a court filing seen by Reuters.
Kalshi also argued that Nevada investigators misrepresented their residences to the company, which Kalshi’s lawyers said violates federal law, and that at least one investigator circumvented Kalshi’s own blocking measures.
Reuters reported that a judge in Nevada issued a preliminary injunction in April barring Kalshi from offering such contracts in the state without obtaining a gaming license. The Nevada courts did not immediately respond to a request for comment outside normal business hours, Reuters added.