Nevada state-court orders barred Kalshi from offering or facilitating sports, election, and entertainment event contracts within Nevada. Separately, on August 28, 2026, the Ninth Circuit upheld the dissolution of a federal preliminary injunction for sports contracts and sent the election-contract issue back for further consideration. Nevada’s Gaming Control Board announced an August 12 deadline for Kalshi to implement third-party geofencing, but the Board’s published account does not establish whether Kalshi met that deadline or whether a penalty followed. So the legal restriction is documented; the status of technical access after the deadline is not confirmed by the available announcements.
What “banned in Nevada” means
The phrase refers to a Nevada state-court preliminary injunction, not a nationwide ban on Kalshi. Nevada’s Gaming Control Board said the May 18, 2026 order prohibited Kalshi from offering or facilitating sports-, election-, and entertainment-related event contracts within the state. The order is part of a state enforcement case over Nevada gaming laws.
That state case is distinct from Kalshi’s federal lawsuit arguing that the Commodity Exchange Act (CEA) limits Nevada’s ability to regulate its contracts. The Ninth Circuit’s August 28 decision addressed the federal preliminary-injunction dispute—not the state court’s order—and did not resolve every contract category.
How the Nevada case and federal appeal differ
| Proceeding | Question at issue | What the court did | What that means |
|---|---|---|---|
| Nevada state enforcement | Whether Kalshi could offer or facilitate the covered event contracts within Nevada under state gaming law. | The First Judicial District Court entered a preliminary injunction, as reported by the Nevada Gaming Control Board on May 18, 2026. | The state-court order covered sports, election, and entertainment contracts in Nevada. |
| Federal preemption case | Whether the CEA likely preempted Nevada gaming laws as applied to Kalshi’s contracts. | On August 28, 2026, the Ninth Circuit affirmed dissolution of Kalshi’s federal preliminary injunction as to sports contracts and remanded the election-contract issue. | The appellate ruling concerned the federal injunction and did not itself issue Nevada’s state-court restriction or decide all event contracts. |
A preliminary injunction is an order governing conduct while litigation proceeds; it is not, by itself, a final resolution of every underlying legal claim. The two proceedings also involve different legal questions, so the Ninth Circuit’s decision should not be read as replacing or expanding the state-court order.
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What the Ninth Circuit decided about sports and election contracts
Kalshi argued that its status as a designated contract market under the CEA meant Nevada’s gaming laws could not apply. The Ninth Circuit concluded Kalshi had not shown that federal law likely preempted Nevada’s laws as applied to the sports event contracts at issue. In its reasoning, the court said those sports contracts were not “swaps” under the CEA definition and discussed the CFTC regulation, 17 C.F.R. § 40.11(a), which prohibits certain swaps involving or referencing gaming.
The result was affirmance in part and remand in part. The court affirmed the dissolution of the federal preliminary injunction as to sports contracts, while returning the election-contract question for further consideration. It did not decide that every prediction-market contract is unlawful, or that every state can regulate every contract in the same way. Entertainment contracts were covered by Nevada’s reported state-court order, but were not the category decided in the Ninth Circuit’s sports-contract holding.
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Key dates in the Nevada enforcement sequence
| Date | Event |
|---|---|
| March 20, 2026 | The Nevada Gaming Control Board announced that the First Judicial District Court had entered a temporary restraining order covering sports, election, and entertainment event contracts in Nevada. |
| April 3, 2026 | The Board said the judge granted its motion for a preliminary injunction and extended the temporary restraining order for 14 days while a written order was forthcoming. |
| May 18, 2026 | The Board reported that the court entered a preliminary injunction prohibiting Kalshi from offering or facilitating sports-, election-, or entertainment-related contracts within Nevada. |
| June 12, 2026 | The Board announced it had asked the state court to hold Kalshi in contempt. The Board alleged its investigators had been able to enter covered contracts from Nevada despite the May order. |
| July 23–24, 2026 | The Board and Kalshi filed an agreement; the Board described it publicly the next day. It said Kalshi acknowledged investigators had entered covered contracts from Nevada and agreed to implement third-party geofencing by August 12. |
| August 28, 2026 | The Ninth Circuit issued its opinion in KalshiEX, LLC v. Assad, affirming in part the dissolution of the federal injunction for sports contracts and remanding the election-contract issue. |
The contempt account and the reported acknowledgment come from the Gaming Control Board’s description of the filing and agreement; they are not independent findings in the Ninth Circuit opinion.
What Kalshi agreed to do—and what remains unconfirmed
In its July 24 announcement, the Nevada Gaming Control Board said the filed agreement required Kalshi to implement a “robust, multi-source geofencing solution” from a third-party commercial provider by August 12, 2026. The Board described a stipulated penalty of $120,000 per day if Kalshi missed that implementation deadline and said Kalshi would provide periodic progress updates.
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The deadline has passed, but the Board’s announcement does not verify whether geofencing was completed by August 12 or whether the penalty was triggered or imposed. That means the published information establishes the agreed deadline and stated consequence, not Kalshi’s post-deadline technical compliance or current user access.
What Nevada users should take from this
- Do not treat the appellate ruling as a full reversal of Nevada’s restriction. It concerned a separate federal injunction and addressed sports contracts, with the election-contract issue sent back for further consideration.
- Do not assume the ruling settled every contract category. Nevada’s reported injunction covered sports, election, and entertainment contracts; the Ninth Circuit’s described holding focused on sports, with election issues remanded.
- Do not infer account or position outcomes from the court rulings alone. The cited announcements do not specify how any individual account, open position, settlement, or withdrawal is handled. For account-specific questions, rely on current notices from Kalshi and the relevant court or regulator rather than assuming that access, balances, or contract outcomes have a particular status.
- Keep the relevant records. If a position or account is affected, retain transaction and account notices and the dates of any attempted access, so you can refer to precise information when contacting the platform or seeking qualified legal advice.
Sources and scope
The enforcement timeline and geofencing terms above are attributed to Nevada Gaming Control Board announcements dated March 20, April 3, May 18, June 12, and July 24, 2026. The federal ruling is the Ninth Circuit’s August 28, 2026 opinion in KalshiEX, LLC v. Assad. These sources establish the reported orders, appeal outcome, agreement, deadline, and stated penalty; they do not establish post-August 12 implementation or penalty enforcement.
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