{"id":74158,"date":"2026-06-17T09:40:41","date_gmt":"2026-06-17T09:40:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kalshis-ip-geofence-still-lets-nevada-users-buy-banned-contracts-as-state-seeks-120000-a-day\/"},"modified":"2026-06-17T09:40:41","modified_gmt":"2026-06-17T09:40:41","slug":"kalshis-ip-geofence-still-lets-nevada-users-buy-banned-contracts-as-state-seeks-120000-a-day","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kalshis-ip-geofence-still-lets-nevada-users-buy-banned-contracts-as-state-seeks-120000-a-day\/","title":{"rendered":"Kalshi&#8217;s IP Geofence Still Lets Nevada Users Buy Banned Contracts as State Seeks $120,000 a Day"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The Nevada Gaming Control Board filed on June 12 to hold Kalshi in contempt of a May 18 order to geofence the state.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Board investigators bought banned event contracts (sports and an election) while physically inside Nevada.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Nevada is seeking $120,000 a day, pegged to 1\/50 of Kalshi\u2019s estimated daily fee revenue.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>A Geofence That Doesn\u2019t Hold<\/h2>\n<p>On June 12, the Nevada Gaming Control Board (NGCB) <a href=\"https:\/\/www.gaming.nv.gov\/siteassets\/content\/about\/press-release\/nevada-gaming-control-board-asks-court-to-hold-kalshi-in-contempt.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">asked<\/a> the First Judicial District Court in Carson City to hold Kalshi in contempt, alleging the <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-prediction-markets\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">prediction market<\/a> has flouted a May 18 order to geofence its platform so Nevada residents cannot trade sports-, election-, or entertainment-related event contracts.<\/p>\n<p>Rather than license an established geolocation provider, Kalshi leaned on a \u201chome-grown\u201d system keyed to IP addresses, which the state calls plainly inadequate. To prove this assessment, investigators bought <a href=\"https:\/\/www.8newsnow.com\/news\/local-news\/nevada-gaming-regulators-urge-court-to-find-kalshi-in-contempt-levy-120000-a-day-fine\/\" target=\"_blank\" rel=\"noopener noreferrer\">prohibited contracts<\/a> on eight occasions between May 28 and June 1 while physically located in Nevada \u2013 markets on a tennis match, NBA playoff games, MLB games, a soccer match and the Los Angeles mayoral election. They repeated the test from June 8 to 11, with World Cup contracts among those still reachable from inside the state as the tournament opened.<\/p>\n<p>The penalty Nevada wants is unusual in its arithmetic: $120,000 <a href=\"https:\/\/www.ingame.com\/nevada-lawsuit-kalshi-geofence-penalties\/\" target=\"_blank\" rel=\"noopener noreferrer\">a day<\/a>, which the board derived as 1\/50 of Kalshi\u2019s estimated daily fee revenue, for every day the geofence stays porous. Kalshi, which has argued that proper geofencing is \u201cprohibitively expensive\u201d despite it being routine for every licensed U.S. sportsbook, <a href=\"https:\/\/www.reviewjournal.com\/business\/casinos-gaming\/nevada-gaming-regulators-ask-judge-to-find-kalshi-in-contempt-of-court-3838501\/\" target=\"_blank\" rel=\"noopener noreferrer\">blamed a glitch<\/a> and said the board never reached out before filing its contempt request.<\/p>\n<p><a href=\"https:\/\/srt.bitcoin.com\/kalshi-may\" target=\"_blank\" rel=\"noopener noreferrer\">Kalshi<\/a> has spent months casting itself as the compliance adult in <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-prediction-markets\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">prediction markets<\/a> \u2013 its head of enforcement, Robert DeNault, <a href=\"https:\/\/news.bitcoin.com\/enough-is-enough-kalshi-slams-polymarket-over-alleged-lack-of-compliance-and-kyc\/\">publicly told<\/a> rival Polymarket that \u201cenough is enough\u201d over offshore users and weak controls. Now, Nevada\u2019s filing suggests Kalshi\u2019s own guardrails are no sturdier when under serious scrutiny.<\/p>\n<p>There is also the question of whether the CFTC\u2019s <a href=\"https:\/\/news.bitcoin.com\/cftc-says-sports-contracts-involve-gaming-but-proposes-to-allow-almost-all-of-them\/\">new federal rulebook<\/a> can shield Kalshi from state gaming law in the future. Nevada is the only court in the country to have actually ordered the platform to block sports contracts \u2013 a key point of contention during the home-soil World Cup that is set to generate <a href=\"https:\/\/news.bitcoin.com\/world-cup-2026-could-draw-50-billion-in-bets-a-first-for-prediction-markets\/\">$50 billion<\/a> in bets. NGCB Chairman Mike Dreitzer signaled no retreat: \u201cWe will continue to vigorously enforce Nevada law to safeguard gaming in our state.\u201d The court has not yet ruled.<\/p>\n<p>For now, a Nevada resident can allegedly still open Kalshi, pick a World Cup market, and buy a contract, a judge said, which should be out of reach.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/kalshis-ip-geofence-still-lets-nevada-users-buy-banned-contracts-as-state-seeks-120000-a-day\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways The Nevada Gaming Control Board filed on June 12 to hold Kalshi in contempt of a May 18 order to geofence the state. Board investigators bought banned event contracts (sports and an election) while physically inside Nevada. Nevada is seeking $120,000 a day, pegged to 1\/50 [&hellip;]<\/p>\n","protected":false},"author":3947362403,"featured_media":74159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74158"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362403"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74158"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74159"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}