New Jersey state regulators have ordered Kalshi and Robinhood to cease offering sports event prediction markets. The two platforms had been allowing users to bet on the outcomes of sports events, which is illegal in the state. The New Jersey Division of Gaming Enforcement issued cease and desist letters to both companies, saying that their operations violate state laws.
Kalshi, a financial trading platform, had recently launched a new feature that allowed users to bet on the outcomes of sports events using real money. The platform has now been forced to halt this offering in New Jersey. Robinhood, a popular investment app, also offered users the ability to bet on sports events, but has now been ordered to stop this activity in the state.
New Jersey has stringent laws around sports betting, with only licensed casinos and racetracks being allowed to offer such services. Both Kalshi and Robinhood were operating without the necessary licenses, which led to the regulatory action against them.
The move by New Jersey regulators comes as the state looks to crack down on unlicensed sports betting operators and protect consumers from potential harm. The Division of Gaming Enforcement has made it clear that it will not tolerate illegal gambling activities in the state, and will take action against any companies that violate the law.
Both Kalshi and Robinhood have yet to comment on the cease and desist orders. It is unclear if they will seek to obtain the necessary licensing to resume offering sports event prediction markets in the future. In the meantime, users in New Jersey will have to look elsewhere for their sports betting needs.
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