The growing conflict between states with regulated sports betting and the trading platforms offering prediction markets on sporting events to customers in those states erupted on a large scale Thursday with the report that the New Jersey Division of Gaming Enforcement sent cease-and-desist letters to both Kalshi and Robinhood.
Dustin Gouker’s The Closing Line was the first to obtain copies of the letters in which the state agency alleges that Kalshi “is listing unauthorized sports wagers for individuals located within the state of New Jersey.” Robinhood has partnered with Kalshi to offer certain sports-based prediction markets on its own trading platform.
