Nevada sues Kalshi for daily damages over illegal contract sales

Nevada seeks 120,000 dollars a day from Kalshi over banned contract sales

Nevada's Gaming Control Board has asked a Carson City district court to impose a $120,000 per-day fine against Kalshi, alleging the platform continued selling sports, election, and entertainment event contracts after a judge ordered it to stop by August 12.

State investigators said they purchased multiple banned contracts using mobile phones after the deadline passed. Kalshi's attorneys responded that the investigators had misrepresented their state of residence to circumvent the platform's geo-blocking tools, placing the legal violation with the agents rather than the company.

The dispute sits inside a larger conflict over which authority governs Kalshi's operations. On August 11, the CFTC issued an emergency order directing Kalshi to keep trading in New York after the platform reported a market emergency following a July 31 lawsuit by Attorney General Letitia James seeking more than $36 billion in damages. Tribal gaming attorneys at this week's Indian Gaming Association webinar called the CFTC's posture an attempt to override judicial authority — a function they argued belongs to courts alone.