Kalshi, an innovative online financial exchange linked to prominent political figures like Donald Trump Jr., faces scrutiny from gambling regulators who insist it's operating illegally by offering sports betting markets. Regulators argue that this requires a state license, citing cease-and-desist letters from several states. Kalshi contends it operates under federal jurisdiction and has successfully contested several legal challenges. This ongoing dispute highlights the complex legal landscape of American sports betting and its potential implications for both state laws and the overall industry.
Gambling regulators have ordered online financial exchange Kalshi to cease offering markets on sports, but the upstart company with White House connections has refused.
Kalshi, which counts Donald Trump Jr. as a strategic adviser, disagrees and says it answers to the federal government, not the states.
Gambling regulators, mindful of their tax revenue, say both instances are sports betting, a business that requires a license from the state to operate.
Kalshi has so far deflected legal challenges. Seven states have sent cease-and-desist letters to the company in recent months, alleging that its activities violate state law.
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