New Jersey orders Kalshi and Robinhood to stop unapproved betting
Kalshi and Robinhood have been sent cease-and-desist letters.
Key points:
– The New Jersey Department of Gaming Enforcement (NJDGE) has issued cease-and-desist letters to Kalshi and Robinhood relating to unauthorised sports wagering
– Both platforms have been asked to void all bets placed by New Jersey residents and cease such activities by Friday 28 March 2025
According to reports, the New Jersey Department of Gaming Enforcement (NJDGE) has issued cease-and-desist orders to Kalshi and Robinhood, stating that both platforms are offering unauthorised sports wagering in the state.
This action follows a discussion over the legality of such betting activities, especially after recent sports events.
The letters, obtained by The Closing Line, indicate that the NJDGE addressed Kalshi regarding the state’s law, which restricts wagering on college sports events held in New Jersey or involving local teams. This includes the East Regional of the men’s college basketball tournament in Newark, where Kalshi had been offering betting options.
The New Jersey Division of Gaming Enforcement has asked Kalshi and Robinhood to stop offering sports wagering in the state and void any bets placed by New Jersey residents. They have set a deadline of midnight on Friday 28 March 2025, stating that legal action might follow if the platforms do not comply.
Good to know: The cease-and-desist letters come after Kalshi’s March Madness betting launch
Kalshi issued a statement referencing its regulation under the CFTC and its intention to work with New Jersey officials. The platform is also facing a cease-and-desist order in Nevada, while Robinhood is under investigation in Massachusetts for offering sports event trading during March Madness.
A Kalshi spokesperson stated: “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.”
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