Nevada and Kalshi Agree on Geofencing Technology
Court hearing postponed as technical compliance process begins.
1Legal Dispute and Geofencing Technology
Nevada and Kalshi have suspended an escalating legal dispute by jointly petitioning the court. This petition requests the cancellation of a scheduled hearing and the oversight of a stronger geofencing technology implementation. The agreement shifts focus from sanctions to technical compliance while the broader legal battle over prediction market contracts continues.
2Hearing Cancellation and Temporary Agreement
Nevada and Kalshi, in their joint petition to the court, requested the cancellation of a hearing scheduled for July 29, 2026. This hearing was set in the context of legal proceedings initiated by Nevada against Kalshi. The agreement shows that the parties have reached a temporary path forward regarding geofencing technology.
3Background of the Legal Process
Nevada regulators issued a cease-and-desist order against Kalshi in March 2025, classifying the company's event contracts as unlicensed gambling. A temporary restraining order was issued in March 2026, followed by an amended preliminary injunction. This decision supported Nevada's legal battle against Kalshi.
4Technical Compliance and GeoComply
The parties have chosen to focus on the implementation of GeoComply's geofencing technology rather than continuing the legal dispute. Kalshi must ensure the full implementation of this technology or submit a sworn affidavit explaining why the implementation remains incomplete. If the court finds that Kalshi did not act with sufficient diligence, the company may face penalties.
5Information Sharing Between Nevada and Michigan
Kalshi will provide Nevada with the same implementation updates shared with Michigan regulators and allow discussions with GeoComply alongside company counsel. This agreement will remain effective independently of proceedings in Michigan.
6Awaiting Court Approval
The joint agreement was signed on July 23 and now awaits court approval. This agreement is seen as a significant step in the implementation of geofencing technology and will help ensure legal compliance.
7Kalshi's Liability Disclaimer
Kalshi has clearly stated in the agreement that it does not accept any liability. The company maintains that the trades made do not constitute a legal violation and reserves all rights in this regard. This highlights the complexity of the legal process.
8Future Sanctions
If the court determines that Kalshi did not act with sufficient diligence in implementing the GeoComply solution, the company may face penalties. The amount of these penalties will be determined by the court. This situation requires Kalshi to approach the technical compliance process with seriousness.
Original article: ReadWrite — Nevada ve Kalshi Geofencing Teknolojisi Üzerinde Anlaştı