Kalshi Crackdown Far From Over as Kansas and Arizona Watch Closely

States Keep Tabs

Kalshi’s already slugging it out in court with Nevada and New Jersey after cease-and-desist orders hit, and now these two states are poised to jump in, depending on how the chips fall. It’s a big deal for a company that’s been pushing the boundaries of betting-style markets under federal oversight.

In Kansas, the Racing and Gaming Commission (KRGC) hasn’t fired off any cease-and-desist letters yet, per EGR North America. But they’re not sitting idle either.

Spokesman Randy Evans told the outlet the KRGC is “monitoring” legal showdowns in New Jersey and Nevada, where Kalshi’s suing state regulators over their crackdowns. The commission’s holding off on direct action, but Evans noted they “may get involved” based on those court outcomes and whatever the Commodity Futures Trading Commission (CFTC) says next.

Legal Tangle Widens

Kalshi’s been a lightning rod since Nevada and New Jersey slammed it with orders in March, claiming its sports contracts are unlicensed gambling. The platform fired back with lawsuits, arguing its peer-to-peer swaps fall under CFTC turf, not state gaming rules.

Ohio and Illinois piled on this week, hitting Kalshi, Robinhood, and Crypto.com with their own cease-and-desists, while Connecticut’s also been sniffing around. Now, with Kansas and Arizona circling, the crackdown’s spreading like wildfire, four states have already acted, and more could follow.

Kalshi says it’s a legit exchange, greenlit by the CFTC after a 2024 win letting it run election bets. States counter that sports contracts look too much like betting, which they control.

Kansas and Arizona haven’t drawn a line yet, but their regulators tracking Nevada and New Jersey cases, where hearings might wrap by month’s end, shows they’re not sleeping on it. If Kalshi loses, expect tighter state grip; if it wins, the CFTC could cement its hold.