Kalshi and Robinhood Booted from NJ, Kalshi Sues NJ and Nevada

New Jersey Cracks Down

Both platforms got hit for offering “unauthorized sports wagering” under the New Jersey Sports Wagering Act, which limits betting to licensed outfits.

NJDGE flagged Kalshi for dishing out sports bets to state residents, including college games tied to New Jersey teams or events, off-limits per the state constitution. Robinhood caught flak, too, partnering with Kalshi to roll out NCAA March Madness event trading, which the NJDGE called illegal betting.

NJDGE demanded an immediate stop to all sports betting access for New Jersey residents and told Kalshi to void any existing wagers by residents.

Robinhood pulled its NCAA single-game markets for the state fast, though other prediction options stayed live. Kalshi, however, didn’t budge, it’s fighting back with lawsuits instead.

Kalshi Fires Back in Court

Nevada’s notice had demanded Kalshi ditch sports and election contracts by March 14, calling them unlicensed sports pools needing state oversight and taxes.

Kalshi’s legal swing argues its event contracts fall under the Commodity Futures Trading Commission (CFTC), not state gambling rules.

The company’s stance is sharp. “Our markets are swaps, not sportsbooks—peer-to-peer, not house-run,” Kalshi’s filings state, per court docs. It claims state orders overstep federal turf laid out by the Commodity Exchange Act, risking its CFTC standing, open contracts, and cash flow if forced to comply.

CEO Tarek Mansour vented on LinkedIn, saying regulators ignored outreach attempts. “We tried to school them on prediction markets, but they wouldn’t listen—so we’re suing,” he wrote. Nevada’s election betting ban, despite a 2024 federal ruling OK’ing it, adds fuel to Kalshi’s fire.