Kalshi files federal lawsuits against both Nevada and New Jersey

The platform’s CEO has confirmed the company’s plans to dispute recent rulings.  

Prediction market platform Kalshi’s CEO Tarek Mansour has confirmed on Twitter (X) the company’s plans to enter into legal action against the states of Nevada and New Jersey, following recent rulings which have looked to shut down its sports betting markets.  

The details of the company’s grounds for legal action have not yet been revealed. However, it is clear that the platform’s CEO, Mansour, intends to push back vigorously against any potential censorship of prediction markets in the US landscape. Further, this latest action comes following a partnership announcement earlier this month between Kalshi and trading platform Robinhood, for the provision of events-based contracts on college basketball tournaments – among other things – during March Madness.  

More specifically, Kalshi CEO Tarek Mansour stated, “We need prediction markets… now, more than ever. While they are not our regulators, both states have issued cease and desist orders that fundamentally misunderstand prediction markets and undermine the foundation of US financial markets, which are regulated by the federal government.  

“We 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… but our words fell on deaf ears. I can’t 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. We are left with no choice: Sue.” 

Good to know: Following the pair’s recently brokered partnership deal, the New Jersey Department of Gaming Enforcement submitted a cease-and-desist letter to Kalshi and Robinhood last week  

This is not the first time Kalshi has found itself in the courtroom in recent years, as the platform also sued the Commodity Futures Trading Commission in 2023 for the alleged wrongful denying of its application to launch an election betting market. More recently, the organisation appointed Donald Trump Jr. as its new Strategic Advisor.

Will Underwood

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