New Jersey regulator issues cease-and-desist letters to Robinhood, Kalshi
NJDGE says both companies offered unauthorized sports betting
Key Points
- The regulator requested all bets be voided
- Failure to comply with the letter could result in legal action
The NJ Department of Gaming Enforcement (NJDGE) has sent a cease-and-desist letters to two platforms, according to a local report from The Closing Line.
The regulator cited prediction market platform Kalshi and Robinhood, a financial platform, claiming both companies were offering “unauthorized sports wagering” to New Jersey players.
Both companies were given a Friday deadline for compliance, according to the local report.
The department of gaming enforcement has requested for any bets placed by residents in the Garden State to be voided.
According to the letter, Kalshi violated state law by allowing wagers on New Jersey college teams or sporting events held in the state. For this year’s tournament, the City of Newark is hosting the East Regional.
Kalshi recently partnered with Robinhood to offer players sport event trading on March Madness, the local report said.
A spokesperson for Kalshi issued a statement on behalf of the company, saying, “Kalshi believes in the value of regulation and operates under the comprehensive oversight of the Commodity Futures Trading Commission.
“We look forward to engaging with the state of New Jersey to resolve this matter.”
In other company news, Kalshi recently appointed Donald Trump Jr. as its new Strategic Advisor.
The company said in a statement, “With his extensive business experience and influence, Don Jr. brings a fresh perspective to Kalshi as we continue to push prediction markets into the mainstream.
“This important addition to our team marks a major milestone for the future of Kalshi – and for how Americans uncover the truth in today’s fractured, often biased media landscape.”
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