Prediction market operator Kalshi has hit back at Nevada’s gaming regulator after it sought daily penalties of $120,000 over the firm’s alleged failure to comply with a geofencing order.
According to a court filing, board investigators successfully placed nine trades on Kalshi’s mobile application while connected to cellular networks in Nevada, a day after a court-ordered deadline for the company to have a complete geofencing solution in place.
Kalshi stated that it hired GeoComply, a vendor licensed by Nevada’s gaming regulator, and kept the state updated throughout. However, Nevada investigators allegedly misrepresented their residences to Kalshi, violating federal law, and at least one circumvented the company’s own blocking measures.
A judge in Nevada issued a preliminary injunction in April, barring Kalshi from offering such contracts in the state without obtaining a gaming license.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.