Kalshi and Robinhood are facing cease-and-desist orders from regulators in New Jersey and Nevada for their sports prediction markets. The orders come after the platforms had notable success, particularly during the March Madness event, where Kalshi reported over $320 million in trading volume. Despite pulling certain contracts from New Jersey, both companies maintain they do not violate any state laws. This situation could have significant implications for the future of sports betting in the U.S., as regulatory scrutiny increases on emerging prediction markets.
"We have been targeted before, we have fought before, and we have won before; this time will be no different," said CEO Tarek Mansour in response to the cease-and-desist orders.
Robinhood pulled its March Madness contracts from New Jersey due to the cease-and-desist but maintains its stance that they don’t violate state laws.
Prediction markets have surged in popularity following the 2024 US presidential election, with companies like Kalshi leading the expansion into sports events.
Kalshi reported over $320 million in trading volume for the men's March Madness championship alone, highlighting the importance of this event in US sports betting.
Collection
[
|
...
]