![\"Kalshi](\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/04\/Kalshi-edited.webp\")
Prediction market Kalshi<\/strong> has stepped up its legal battle against regulators in Nevada and New Jersey by filing lawsuits following cease-and-desist orders. <\/p>\n\n <\/div>\n\n\n
Kalshi CEO Tarek Mansour<\/strong> described prediction markets as a \u201ccritical innovation of the 21st century\u201d and accused the Nevada Gaming Board and New Jersey Department of Gaming Enforcement of going too far in their response.<\/p>\n\n <\/div>\n\n\n
- \n
- Robinhood and Kalshi Ordered to Cease Operations in New Jersey<\/a><\/li>\n
- ECB publishes code of conduct on gambling sponsorship agreements in cricket<\/a><\/li>\n
- UFC Betting Scandal Fighters Molina and Minner Receive Suspensions<\/a><\/li>\n <\/ul>\n<\/div>\n\n\n\n \n
Posting on X (formerly Twitter), Mansour said<\/a>: \u201cBoth states have issued cease and desist orders that fundamentally misunderstand prediction markets and undermine the foundation of U.S. financial markets, which are regulated by the federal government.<\/p>\n\n <\/div>\n\n\n
\n \n\u201cWe have made every effort to engage proactively with both Nevada and New Jersey and try to educate them about prediction markets, how they are regulated, and how critical they are \u2026 but our words fell on deaf ears.<\/p>\n\n <\/div>\n\n\n
\n \n\u201cI can\u2019t speak to why they are taking this action, but prediction markets have proven their use, so it is a shame that these authorities are still trying to censor them.<\/p>\n\n <\/div>\n\n\n
\n \n\u201cWe are left with no choice: sue.\u201d<\/p>\n\n <\/div>\n\n\n
\n \nKalshi And Robinhood Predictive Markets Under Fire From Nevada And New Jersey Regulators<\/span><\/h2>\n\n<\/div>\n\n\n
\n \nThis legal challenge from Kalshi<\/a> comes after Nevada and New Jersey regulators attempted to ban both Kalshi and fellow predictive market Robinhood from offering sports prediction markets in their states.<\/p>\n\n <\/div>\n\n\n
\n \nAccessible across the US \u2014 including in states where sports betting is prohibited \u2014 Kalshi introduced single-game betting markets for NCAA basketball tournaments on March 17th.<\/p>\n\n <\/div>\n\n\n
\n \nThe men’s tournament brought in almost $200m (~\u00a3154.9m) worth of revenue for Kalshi in just the first two rounds, with another $12.8m (~\u00a39.1m) from the women’s events.<\/p>\n\n <\/div>\n\n\n
\n \nKalshi has also announced a partnership with Robinhood, which began offering sports markets for Super Bowl 59 earlier this year.<\/p>\n\n <\/div>\n\n\n
\n![\"robinhood](\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/03\/Robinhood_logo_optimized-large.jpg\")
Fellow prediction market Robinhood has also been under threat. Image credit: Robinhood.<\/figcaption><\/figure><\/div>\n\n \n \nBut despite this latest move from Kalshi, the New Jersey Department of Gaming Enforcement (NJDGE) has threatened further action.<\/p>\n\n <\/div>\n\n\n
\n \nShould Kalshi fail to comply with its order to leave the state, the NJDGE has stated it will use \u201cany measures available under state law.\u201d <\/p>\n\n <\/div>\n\n\n
\n \nHowever, it did agree to extend the deadline for compliance with the cease-and-desist letter to April 7th.<\/p>\n\n <\/div>\n\n\n
\n \nKalshi Defends Prediction Markets In Response To Legal Threat From Nevada And New Jersey<\/span><\/h2>\n\n<\/div>\n\n\n
\n \nThe argument made by Kalshi in defence of its operations is that sports-outcome contracts do not constitute gambling, and are “valid under federal law.”<\/p>\n\n <\/div>\n\n\n
\n \n\u201cPrediction markets are a critical innovation of the 21st century and, like all innovations, they are initially misunderstood,\u201d Mansour added.<\/p>\n\n <\/div>\n\n\n
\n \n\n \nThe Ohio Casino Control Commission also issued a cease-and-desist letter to Kalshi, Robinhood and Crypto.com.<\/p>\n\n <\/div>\n\n\n
\n![\"\"](\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/04\/crypto-dot-com-764x457-1.webp\")
Crypto.com has also been issued a cease-and-desist letter by the Ohio Casino Control Commission (Image credit: Crypto.com)<\/figcaption><\/figure><\/div>\n\n \n \nIn the letter, it stated: \u201cThe commission determined the event contracts offered by the companies on sporting events meet the definition of sports gaming under the law, which requires licensure to be legally offered in Ohio.\u201d<\/p>\n\n <\/div>\n\n\n
\n \nBut despite the challenges from the Ohio, Nevada and New Jersey regulators, Kalshi CEO Mansour has vowed to keep battling.<\/p>\n\n <\/div>\n\n\n
\n \nHe said: \u201cThey [prediction markets] are the quintessential truth machines.<\/p>\n\n <\/div>\n\n\n
\n \n\u201cWith trust in traditional institutions at an all-time low, people are turning to prediction markets at an astronomical pace. The growth of the ecosystem in the last year is a testament to how important they have become to the American people.\u201d<\/p>\n\n <\/div>\n\n\n
\n \nWhat Is Kalshi? Prediction Markets Explained<\/span><\/h2>\n\n<\/div>\n\n\n
\n \nKalshi was Launched in July 2021, and offers a platform for both retail and institutional traders to place trades on future events.<\/p>\n\n <\/div>\n\n\n
\n \nThese include economic and political indicators, awards and sporting markets.<\/p>\n\n <\/div>\n\n\n
\n \nContracts are priced based on the market’s estimated probability, with users trading based on a yes-no option.<\/p>\n\n <\/div>\n\n\n
\n \nTypically, prediction market contracts have a trade set up between 0% and 100% probability.<\/p>\n\n <\/div>\n\n\n
\n \nDoes Kalshi Offer Esports Markets?<\/span><\/h2>\n\n<\/div>\n\n\n
\n \nThere have been a number of esports markets offered by Kalshi in the past.<\/p>\n\n <\/div>\n\n\n
\n \nAt present, the platform is offering a market on the League of Legends<\/a> World Championship.<\/p>\n\n <\/div>\n\n\n
\n \nT1 are the current market favourites with the highest probability offered, at 28%. The organisation are followed by Hanwha Life Esports (21%) and GenG (12%.)<\/p>\n\n <\/div>\n\n\n","protected":false},"excerpt":{"rendered":"
Kalshi CEO Tarek Mansour. Image credit: Fortune Prediction market Kalshi has stepped up its legal battle against regulators in Nevada and New Jersey by filing lawsuits following cease-and-desist orders. Kalshi CEO Tarek Mansour described prediction markets as a \u201ccritical innovation of the 21st century\u201d and accused the Nevada Gaming Board and New Jersey Department of … Continued<\/a><\/p>\n","protected":false},"author":247,"featured_media":173539,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","esi_template":"default","excluded":false,"footnotes":""},"categories":[87],"tags":[20716,1063,3596],"class_list":["post-173534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling","tag-kalshi","tag-nevada","tag-new-jersey"],"acf":[],"yoast_head":"\n
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