Regulatory Updates
Nevada Escalates Geofencing Fight with Kalshi
The Nevada Gaming Control Board filed in Carson City late Friday stating that Kalshi missed the August 12 deadline for full geofencing under the parties’ stipulated agreement and should face the agreed $120,000-per-day penalty. Board investigators reported placing multiple trades on Kalshi’s mobile app from Nevada cellular networks after the deadline; the Board said agents were told they were on a prior version of the app not subject to geofencing.
Kalshi’s attorneys responded in a letter that investigators misrepresented their residences and, in at least one case, circumvented existing blocks. General Counsel Rick Heaslip publicly stated the company hired a Nevada-approved vendor (GeoComply), kept the state updated, and fixed the reported issue within hours, calling the Board’s action a “vindictive waste of taxpayer dollars.”
The Board posted a statement rejecting the accusations as baseless and saying Kalshi’s missed deadline left it no choice but to notify the court.
Sources: Nevada Independent, Reuters, Rick Heaslip
Connecticut Federal Court Denies Kalshi Injunction Pending Appeal
On August 15, U.S. District Judge Vernon D. Oliver denied Kalshi’s motion for an emergency injunction pending appeal in KalshiEX LLC v. Cafferelli (D. Conn.). The court had already denied Kalshi’s preliminary-injunction motion on August 10.
In rejecting the stay request, the court addressed the CFTC’s recent emergency order and held that an administrative agency lacks authority to issue an order that conflicts with the court’s decision. The ruling leaves Connecticut free to pursue state enforcement; Kalshi is expected to seek relief from the Second Circuit.
The ruling is the first court decision to address the CFTC’s August 11 emergency order (issued in response to the New York AG action).
Sources: D. Conn. docket (ECF 99), Daniel Wallach
Novig Sues Wisconsin
Ludlow Exchange LLC d/b/a Novig filed a complaint on August 14 in the U.S. District Court for the Western District of Wisconsin (3:26-cv-00761) against Attorney General Josh Kaul and Gaming Administrator John Dillett. The suit seeks declaratory and injunctive relief to prevent Wisconsin from applying state gaming laws to Novig’s sports event contracts, arguing they are swaps subject to the CFTC’s exclusive jurisdiction.
Novig began offering contracts to Wisconsin residents roughly one week before filing and is seeking expedited consideration of a preliminary injunction. This is the fifth state Novig has sued since August 4.
Sources: W.D. Wis. docket (3:26-cv-00761), The Block
Company / Product Updates
ProphetX Product Roadmap Outlined for Fall
ProphetX VP of Product Alex Nickel outlined several major updates expected this fall, including new payment methods, a vastly improved RFQ experience, incentives and tooling for makers, cash-out functionality, and a 2.0 app with a new look and feel.
Separately, ProphetX opened new NFL futures (Division Winners, Team to Make the Playoffs, Offensive and Defensive Rookie of the Year) and College Football markets (Week 0 & 1 matchups, National Champion, and Heisman Winner).
Sources: Alex Nickel, ProphetX, ProphetX
Gemini Highlights Prediction Markets as Core Growth Driver
Aldrin Research summarized the key PM takeaways from Gemini’s latest earnings:
Source: Gemini Q2 2026 Earnings Presentation
JPMorgan Ended Polymarket Banking Relationship Last Year
JPMorgan terminated its banking relationship with Polymarket in October 2025 over regulatory concerns, according to the Financial Times and confirmed by Reuters. Polymarket has since moved accounts to a different lender. In a statement, Polymarket said it still maintains a “close, active relationship” with JPMorgan across multiple entities and fund flows, and that its CEO has spoken at three of the bank’s flagship events in the past year. JPMorgan is also reported to remain interested in a potential IPO underwriting role.
FanDuel co-founder Nigel Eccles commented: “Funnily enough they did the same to @fanduel in 2016.”
Sources: Financial Times via The Block, Reuters, Nigel Eccles
Other Relevant News
Kalshi Klear Completes First Weekend Default Simulation
Kalshi Klear completed what it describes as the first successful weekend default simulation by a DCO.
Source: Udesh Jha
Kalshi Moves Toward Flatter Referral Offer
Indications that Kalshi is shifting away from its variable “up to $500” referral bonus toward a flatter offer, following recent CFTC guidance on randomized rewards.
Source: Dan Bernstein
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