Netflix premiered its prediction markets documentary on Sunday, but Kalshi has taken exception to the filmmakers appearing to show wagers placed on the platform in violation of a Nevada court order. At the same time, the company admitted to violating the court order on at least eight occasions.
Netflix promoted the documentary InstaDocs: The Prediction Games with a trailer in the lead-up to its release.
Whether it’s the World Cup or Taylor Swift’s wedding, tens of millions are betting on the outcomes of almost anything using prediction markets.
— Netflix (@netflix) July 23, 2026
Go inside the world of this legal but controversial form of gambling in INSTADOCS: THE PREDICTION GAMES. Premiering July 26. pic.twitter.com/W7gsBl2Zd1
The trailer shows a group of Kalshi traders in Las Vegas. One user reveals a $5,000 wager on Spain to win the World Cup at Kalshi on the day of the final, July 19. The date can be seen on the bet slip. Yet, a Nevada court order had dictated that Kalshi stop allowing users in the state from trading on its sports markets.
Kalshi Sends Netflix Cease-and-Desist Letter
Kalshi alleges that the bet slip shown in the trailer is fake. It sent Netflix a cease-and-desist letter on Friday, requesting that the streaming platform remove the offending segment.
In the letter, Kalshi stated, “The trailer features both fabricated documents and false and misleading statements portraying trades being made on Kalshi in violation of a court order.”
Nevada obtained a temporary restraining order in March requiring Kalshi to stop offering sports, election, and entertainment event contracts in the state. In the letter, Kalshi says it has actively prohibited the trading of sports event contracts in Nevada since May 4.
On X, Kalshi’s head of marketing, Brandon Beckhardt, said the documentary was “a sensationalized film built on fiction.”
Netflix had a chance to make a genuinely interesting documentary about prediction markets.
— Brandon Beckhardt (@beckhardt) July 24, 2026
Instead, they made a sensationalized film built on fiction.
The preview they released features a Kalshi trade slip that's completely fabricated – it looks nothing like our UI. It's either… https://t.co/ELm2ooLEqU
Beckhardt claims the documentary shows a group of influencers, not Kalshi traders. Rival platform Polymarket has been accused of creating a platform for influencers to fabricate trades to share on social media. Beckhardt says the company was not complicit in creating the alleged fake bet slips shown in the documentary.
A Netflix spokesperson responded, commenting, “Netflix upholds the highest standards of journalistic integrity in its documentary programming. Any specific trades or bets referenced during that weekend are between the individual and the app in which they placed the trades.”
Kalshi Admits to Violating Nevada Court Order
Kalshi admitted in court that it allowed users in Nevada to continue trading after the court order. The admission came just a day before it sent Netflix the cease-and-desist letter.
A Nevada investigator placed trades on eight occasions between May 28 and June 1. The Netflix documentary suggests that users could continue trading on the site as recently as July 19.
Initially, Kalshi only blocked users registering with a Nevada address from using the platform. It has now agreed to geofence the state with a completion deadline of August 12. If it has not fully implemented geofencing by then, it will face a $120,000-per-day fine.
“The Court required Kalshi to stop offering covered event contracts in Nevada, and Kalshi violated that order. This agreement will ensure that Kalshi fully complies with Nevada law moving forward, or it will face stiff penalties. We will continue to vigorously enforce Nevada law to safeguard gaming in our state,” stated Nevada Gaming Control Board Chairman Mike Dreitzer in a press release.
Netflix Could Sue Kalshi for Defamation
Following Kalshi’s admission that it has not fully geofenced Nevada, gaming lawyer Daniel Wallach hinted that Netflix could retaliate by suing the company for defamation.
“Kalshi wrote the C&D letter (and sent it to Netflix) with full knowledge of its admission to the Nevada court one day earlier that prohibited trades had occurred. Can Netflix now sue Kalshi for defamation?” Wallach wrote in a LinkedIn post.
Kalshi Faces More Blocks as States Win Court Cases
More states are following Nevada in successfully blocking Kalshi. In Michigan, a judge extended a ban on the platform and said it could face daily fines of $500,000 if it fails to comply with a court order and implement geofencing.
Washington could become the third state to ban the operator after a judge similarly granted the state an injunction against Kalshi. The company has also appealed for an emergency injunction in New York to prevent the state from taking enforcement action.
Wallach said if the Second Circuit “denies Kalshi’s emergency motion, Kalshi could be forced to geo-block sports trades in New York within the next 90 days.”
New Yorkers wager more on sports than any other state in the country. A block in the state where Kalshi is headquartered would be particularly damaging.
