Kalshi files lawsuit against Maryland Lottery and Gaming Control Commission
Kalshi has called for a temporary restraining order against the regulator.
Key points:
– Kalshi has called for a temporary restraining order and preliminary injunction against the Maryland Lottery and Gaming Control Commission (MLGCC)
– The MLGCC sent a cease-and-desist order to Kalshi earlier this month
US predictor market platform Kalshi has filed a lawsuit against the Maryland Lottery and Gaming Control Commission (MLGCC), after the authority sent a cease-and-desist order to Kalshi to cease operations.
Kalshi has called for a motion to instate a temporary restraining order and preliminary injunction against the authority.
The move follows a developing legal case for Kalshi in several US states, where it has received cease-and-desist orders for offering predictor products. Initially, these were placed against Kalshi by states including Nevada and New Jersey, with Ohio and other states following.
Kalshi filed a lawsuit against both the Nevada and New Jersey regulators at the end of March, with CEO Tarek Mansour stating on X: “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.”
It seems this decision has now extended to the Old Line State.
Earlier in April, the MLGCC ordered for a stop of sports event contract offerings, with cease-and-desist orders issued to Kalshi, Robinhood and North American Derivatives Exchange. It marked the sixth state to issue such an order against the platform.
Gambling Insider took part in an instalment of KPMG’s Gaming Webcast Series earlier in April, where we were given context to the Kalshi and Commodity Futures Trading Commission (CFTC) dispute. Put simply, as Kalshi offers a CFTC-approved product, it is allowed certain protections for its operations. However, when offering predictors on sports outcomes, or indeed other outcomes such as presidential elections, does this fall under gaming regulation?
The legal issue is a complex one, and one that will only continue to develop in the coming months.
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