The core issue involves contracts related to sports, elections, and entertainment activities that Nevada law considers gambling and therefore requires a valid gaming license, which Kalshi does not possess. On May 18, 2026, the court instructed Kalshi to implement geofencing technology to prevent Nevada-based users from accessing and trading in these event contracts. Geofencing is a location-based technology designed to restrict access from certain areas. However, the NGCB claims that Kalshi has not adhered to this injunction. In the regulator’s filing, they argue that the continued availability of these contracts within Nevada’s borders violates the court order and jeopardizes the state’s regulatory efforts.
The NGCB stated: “Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances, and its citizens.”

Nevada law mandates that contracts on sports and other events be licensed activities. The regulators allege that Kalshi is unlawfully operating within the state by offering these products without proper authorization.
Investigations revealed that users could purchase contracts on the Kalshi app for high-profile events such as NBA playoff games, Major League Baseball matches, a boxing bout, a tennis match, and even a celebrity wedding. The filing also notes that the platform processes significant daily betting volumes linked to major international sporting events.

The NGCB elaborated: “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.”

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Licensed sportsbooks in Nevada use advanced geolocation technology that cross-verifies a user’s location through multiple data points before accepting bets. The regulators allege that Kalshi has declined to adopt similar measures. Instead, the company reportedly invested $190,000 in a proprietary solution relying on IP address detection. US regulators describe this method as “notoriously unreliable” and consider it an inadequate safeguard.

The NGCB criticized: “This is just more from the same old Kalshi playbook; delay, delay, delay. Rather than comply with the court’s order, Kalshi has only taken half-hearted and ineffective steps, seemingly hoping the court will accept its minimal efforts so it can continue profiting at the expense of the state and its citizens.” In its motion, Nevada authorities are requesting a formal contempt finding against Kalshi for failing to follow the court order. Such a ruling could lead to penalties or other enforcement actions. The state also asks the court to order “disgorgement of all ill-gotten gains” or, alternatively, impose fines of $120,000 for each day the company remains in violation. Mike Dreitzer, Chairman of the Nevada Gaming Control Board, commented: “The Court has required Kalshi to stop offering covered event contracts in Nevada. We will continue to vigorously enforce Nevada law to safeguard gaming in our state.” Kalshi Nevada Regulators

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The complaint recalls a meeting on May 20, where officials refused to provide any assurances. “When Kalshi sought assurances that the Rhode Island Attorney General did not intend to bring an enforcement action against Kalshi, the Attorney General made clear that Kalshi would not receive any advanced notice before the state filed an enforcement action against the company,” the complaint stated.

Kalshi also highlighted earlier comments from Rhode Island Lottery Director Mark Furcolo, who described the state’s investigation into prediction markets as “very active.” According to Gambling Insider, the company warned that such enforcement efforts risk creating a “patchwork of state‑by‑state regulation Congress sought to prevent.”
In a swift response, Rhode Island Attorney General Peter Neronha filed suit against Kalshi and Polymarket just hours later, alleging that these platforms are operating illegal sports betting under the guise of prediction markets. Neronha’s complaint seeks an injunction to bar the platforms from offering bets on sporting events, arguing that their “event contracts” are essentially sports bets in disguise. “There is no substantive difference between sports betting and ‘events contracts’ in this context; Kalshi and Polymarket know that, and we know that,” he stated. He emphasized that Rhode Island law and its constitution impose strict gambling controls, which the companies are allegedly attempting to bypass.

State officials also voiced concerns about broader impacts, asserting that by circumventing the regulated system, the platforms are diverting business from Sportsbook RI and reducing the state’s revenue. More critically, they warned about the contribution of these sites to problem gambling. “By circumventing Rhode Island State law, we allege that Kalshi and Polymarket are harming Rhode Islanders’ mental and financial well-being,” the release explained.

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This legal clash comes just a week after Bally’s secured Rhode Island’s second online sportsbook license, breaking IGT’s Sportsbook Rhode Island’s monopoly established in 2019. Bally’s is expected to launch its platform in November, once IGT’s exclusive deal expires, signaling a significant expansion of the state’s gambling landscape. The Rhode Island Lottery opened applications late last year, but only Bally’s and Rush Street Interactive submitted bids. After review, Bally’s was selected; Deputy Director Michael O’Rourke noted that officials had hoped for more applicants but received only these two. Despite the high revenue split, with 51% of online betting revenue going directly to the state, Bally’s welcomed the opportunity, already operating two casinos in Lincoln and Tiverton.

Under the new arrangement, Bally’s will claim the full 49% share as both the online operator and the physical sportsbook provider. Lottery figures show that online betting generated $26.7 million from last July through March, with approximately $13.6 million of that amount allocated to the state.

The post Kalshi Files Lawsuit Against First, Rhode Island Counters With Illegal Betting Charges appeared first on iGaming Amerika.

“As leaders in live entertainment, we are always searching for opportunities to partner with forward-thinking brands on innovative partnerships, and as such, are proud to welcome Kalshi as the first prediction market partner of Madison Square Garden,” said Doug Jossem, Executive Vice President, Global Sports & Entertainment Partnerships at MSG Entertainment. “By bringing The World’s Most Famous Arena together with Kalshi, we are providing fans with a unique way to experience both brands, and we look forward to exploring how our companies can collaborate through this exciting new partnership.”

“Madison Square Garden is an iconic staple in the lineage of New York cultural history and we couldn’t be more thrilled to officially become a part of the MSG family. Both MSG and Kalshi share a common vision of engaging consumers on the interests they are most passionate about – whether that be pop culture, sports, music or entertainment,” said Adam Barrick, Head of Sports Partnerships at Kalshi. “As ‘The World’s Largest Prediction Market,’ partnering with ‘The World’s Most Famous Arena’ is a major milestone in Kalshi’s history we’re extraordinarily proud to partner with the best.”

“Kalshi prides itself on being a true New York City institution, and we’re beyond excited to partner with another one in MSG,” added Valeria Vouterakou, Legal Counsel at Kalshi.

As part of this partnership, Kalshi will entitle the sixth-floor concourse of Madison Square Garden, the Kalshi Concourse, a prime branded location with exposure to the millions of fans to attend events at MSG each year. Kalshi will also create interactive digital activations on the concourse to bring fans closer to the brand. At every event, the concourse is accessed by thousands of guests, serving as the main site for merchandise and concessions, including premier vendors, as well as premium bars and refreshment options. The concourse is also the home of numerous “Defining Moments” exhibits – displays that commemorate major moments throughout MSG’s history with archival imagery and memorabilia.

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In addition to the concourse entitlement, Kalshi will be integrated throughout the customer experience for fans attending concerts and comedy events at The Garden, with visibility through multiple touchpoints from digital boards outside as they enter the venue, including MSG’s iconic marquee on Seventh Avenue; to the Kalshi Concourse; to LED signage in the venue bowl. As part of the partnership, Kalshi will also maintain an impactful presence across MSG Networks through advertising integrations and branded content.

Madison Square Garden has been a celebrated center of New York life since it first opened its doors in 1879. Over its history, the venue has been known for showcasing the best of live sports and entertainment as the setting for countless “big events,” inspired performances, and one-of-a-kind moments that have helped define culture. Known as The World’s Most Famous Arena, The Garden has come to epitomize the power and passion of live sports and entertainment to people around the world, with an appearance at MSG often representing a pinnacle of an athlete’s or performer’s career. The Garden hosts hundreds of events and millions of visitors each year, regularly ranking among the highest-grossing entertainment venues of its size on the worldwide Billboard and Pollstar charts.

The post Kalshi signs multi-year naming rights deal with Madison Square Garden appeared first on iGaming Amerika.

On April 28, Judge Edward S. Kiel approved the motion, thereby preventing the NJDGE or the New Jersey Casino Control Commission from “pursuing civil or criminal enforcement actions against Kalshi concerning its sports-related event contracts.”

As part of the terms, Kalshi is required to secure a $100,000 bond through the Clerk’s Office.

In his ruling, Judge Kiel noted that the Commodity Futures Trading Commission (CFTC) designated Kalshi as a contract market in 2020. He pointed out that even though Kalshi is now offering sports contracts, the “CFTC has not reviewed or prohibited Kalshi’s sports-related contracts despite possessing the authority to do so.”

A key issue in the case is that Kalshi’s contracts involve wagering on college basketball tournaments, which contrasts with the New Jersey Constitution, prohibiting betting “on a college sport or athletic event that takes place in New Jersey or on a sport or athletic event in which any New Jersey college team participates regardless of where the event takes place.”

Though the NJDGE emphasized that Kalshi facilitates betting on sports outcomes, Judge Kiel stated, “finally, I am persuaded that Kalshi’s sports-related event contracts fall within the CFTC’s exclusive jurisdiction and am unconvinced by defendants’ arguments to the contrary.”

He further remarked, “Because I found above that Kalshi has established a likelihood of success in demonstrating that New Jersey law is preempted as applied to its sports-related contracts, I also conclude that the interests favor injunction.”

Judge Kiel also mentioned that limited to Kalshi’s alleged ongoing violations of New Jersey law, “Kalshi – as noted in Hendrick – proceeds at its own peril.”

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It’s worth noting that this case has been in progress since March 29, and Kalshi is involved in several other lawsuits across Nevada, Ohio, Illinois, and Maryland.

The judge indicated that if the NJDGE is eventually proven correct, they will be able to initiate enforcement actions; however, this has not been established yet.

While the minimum bond for such cases could be set at $10,000, it has been increased to $100,000 in this instance.

Judge Kiel clarified, “This sum is intended to mirror that of the maximum fine of a violation under the Sports Wagering Act.”

The post Legal Breakthrough for Kalshi: New Jersey Court Halts Enforcement Actions by Gaming Regulators appeared first on iGaming Amerika.

In response, Kalshi is seeking a temporary restraining order and preliminary injunction to counter the authority’s demands.

This lawsuit is part of an ongoing series of legal challenges Kalshi faces across multiple states, having received similar cease-and-desist orders that began with Nevada and New Jersey and later included Ohio and others.

At the end of March, Kalshi took legal action against the regulators in Nevada and New Jersey. CEO Tarek Mansour expressed frustration on X, stating: “We have made every effort to engage proactively with both Nevada and New Jersey and try to educate them about prediction markets, how they are regulated and how critical they are… but our words fell on deaf ears. I can’t speak to why they are taking this action, but prediction markets have proven their use, so it is a shame that these authorities are still trying to censor them. We are left with no choice: Sue.”

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Now, it appears this issue has spread to Maryland.

Earlier in April, the MLGCC directed Kalshi, along with Robinhood and the North American Derivatives Exchange, to stop offering contracts related to sporting events, marking the sixth state to take similar action against Kalshi.

Gambling Insider participated in a recent KPMG Gaming Webcast Series, which provided insights into the ongoing dispute between Kalshi and the Commodity Futures Trading Commission (CFTC). Essentially, while Kalshi offers products that are CFTC-approved and thus enjoy certain operational protections, the question arises: do predictions on sports outcomes or other events, such as presidential elections, fall under gaming regulations?

This legal matter is intricate and is expected to evolve further in the coming months. Kalshi Maryland Gaming

The post Kalshi Takes Legal Action Against Maryland Gaming Authority Amid Cease-and-Desist Orders appeared first on iGaming Amerika.