Maryland: Federal judge denies temporary restraining order, injunction in Kalshi legal suit
The company sued after receiving a temporary restraining order from the state gaming control board.
Key Points
- Kalshi has filed lawsuits against regulators in three states for issuing cease-and-desist letters
- The company won its legal battles in Nevada and New Jersey
- However, the ruling in Maryland affirms the MLGCC’s claims that Kalsi is providing unlawful services
A federal judge has denied an injunction and a temporary restraining order after prediction market provider Kalshi filed both against a Maryland regulator.
Federal Judge John A. Martin ruled the prediction market provider’s services to Maryland players are considered “unlawful” per regulatory standards.
The company recently filed a temporary restraining order and preliminary injunction against the Maryland Lottery and Gaming Control Commission (MLGCC). The regulator issued Kalshi a cease-and-desist order in April.
The Maryland regulator’s letter claimed Kalshi does not hold proper licensing in the state to conduct activities.
This is the latest in a series of legal disputes against state regulators. In its Maryland case, Kalshi alleged the MLGCC is “unconstitutionally threatening to prohibit trading of Plaintiff KalshiEX LLC’s (Kalshi) sports-event contracts in Maryland.”
Maryland Lottery and Gaming Control agency director John Martin wrote in the cease-and-desist order, “Kalshi is operating in Maryland and is offering and conducting what is, in fact, wagering on sporting events.
“However, Kalshi does not hold a sports wagering license issued by the Commission, its wagers have not been approved by the Commission, and it is not otherwise authorized under Maryland law to offer wagers on sporting events.”
The company has faced similar legal challenges in Nevada and New Jersey. However, the company has walked away with legal wins in both of those states.
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