New Jersey and Ohio lawmakers have filed an order from a Nevada judge in an attempt to curb prediction market Kalshi from bringing its form of gambling to the states.
It comes as earlier this year, Nevada and New Jersey became some of the only states to give the green light to Kalshi, bringing the prediction market to them. As it’s regulated at a federal level under the CFTC, it’s allowed Kalshi to bring sportsbooks to areas where sports gambling isn’t allowed.
This has caused a major upheaval in gambling regulation, as one of the most popular forms of gambling right now isn’t able to be properly regulated. As such, a Nevada Chief Judge, Andrew Gordon, has smacked down the previous ruling that gave Kalshi an injunction, thus a pass to provide sports betting in the state.
It has been determined by the court that Kalshi should be subject to gaming laws.
This information has now been used by Ohio and New Jersey lawmakers to try to block Kalshi from doing the same. In the New Jersey letter, Attorney General Matthew J Platkin and Deputy AG Liza Fleming submitted a letter calling for the court to impose a similar ruling.
The letter uses the verdict in its closing argument:
“As Hendrick confirms, Kalshi’s “sports related event contracts” are “sports wagers and everyone who sees them knows it.”
The letter also highlights that New Jersey is now “the only court in the country to accept Kalshi’s attempted federalization of the multi-billion dollar gaming industry.”
Ohio joins New Jersey in pushing out Kalshi
In Ohio, lawmakers have pointed out that the ruling has been used “more than ten times” as a way to avoid further conversations on the matter. It also argues that the CEA “categorically preempts” some form of state regulation on prediction market contracts.
The decision in Nevada also means Kalshi cannot operate there. Its partner, Robinhood, has also pulled the plug on its plans to run sports prediction markets. Nevada also stripped DraftKings and Flutter of their licenses after the prediction markets.
Featured image: Kalshi, Pexels
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