New Delhi, June 26 -- On eight occasions across four days in late May, investigators from the Nevada Gaming Control Board sat inside Nevada, opened the Kalshi app, and bought prediction market contracts - including wagers on the FIFA World Cup, the NBA Finals, and the Stanley Cup Finals. A court order had required Kalshi to stop those transactions. Kalshi processed them anyway. On June 15, the board asked a state judge to hold the company in contempt.

its estimate of Kalshi's daily Nevada revenue during the injunction period - or a disgorgement of all profits the company earned from Nevada users while the order was in force.

Kalshi built its compliance system around internet protocol address verification. IP-address geolocation is among...