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Kalshi and Robinhood, Slapped with Cease and Desist Orders in NJ
Kalshi, a prediction market platform, along with its partner Robinhood, has received cease and desist orders from the New Jersey Division of Gaming Enforcement (NJDGE). This follows similar actions taken against Kalshi in Nevada earlier this month.
Background and Details
The cease and desist order in New Jersey alleges that both companies are engaging in unauthorised sports betting activities. This is particularly pertinent given New Jersey’s strict regulations against betting on college sports events, especially those involving in-state colleges.
With the NCAA Tournament in progress, the state has heightened scrutiny over such activities. Kalshi is required to confirm by 11:59 p.m. ET that it has ceased sports wagering activities in New Jersey and voided all bets placed by New Jersey residents.
Current Status and Impact
Despite the setback, Kalshi’s NCAA prediction markets have seen substantial engagement, with over $208.2 million traded nationwide, highlighting the platform’s growing relevance in the sports betting landscape.
Key Points
- Kalshi and Robinhood received cease and desist orders from the NJDGE for unauthorised sports betting activities in New Jersey.
- Both companies are accused of violating state laws that prohibit betting on college sports events in New Jersey.
- The NCAA Tournament has intensified scrutiny and regulatory actions against such betting practices.
- Kalshi must confirm the voiding of all bets placed by New Jersey residents.
- The prediction market reported significant trading volumes during the NCAA Tournament, reflecting strong user interest.
Why should I read this?
This article covers significant regulatory developments affecting major players in the prediction market and trading platforms, which have direct implications for users and investors in the rapidly changing landscape of sports betting. Understanding these newsworthy events is crucial for staying informed on compliance and market dynamics.
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