• Loading stock data...
Sunday, June 22, 2025

Kalshi Sues After Robinhood Takes Down New Jersey March Madness Markets

Robinhood has taken down NCAA Tournament prediction markets in New Jersey after receiving a cease and desist letter from state regulators.

Mar 27, 2025; Newark, NJ, USA; A view of March Madness signage and the court before an East Regional semifinal of the 2025 NCAA tournament between the Alabama Crimson Tide and the Brigham Young Cougars at Prudential Center.
Vincent Carchietta-Imagn Images

Robinhood has pulled its betting markets for the NCAA Tournament out of New Jersey after pressure from regulators. 

The New Jersey Department of Gaming Enforcement sent a cease and desist letter to Robinhood and Kalshi—the stock trading app’s partner in the endeavor—on Thursday, accusing them of “listing unauthorized sports wagers.”

“Event contracts offered by Robinhood Derivatives are federally regulated by the CFTC and offered through CFTC-registered entities, assuring that retail customers can access these prediction markets in a safe and regulated manner,” a Robinhood spokesperson said. “While we do not believe these contracts run afoul of any state laws, we are no longer allowing New Jersey residents to enter new positions for the Men’s and Women’s Basketball Tournament event contacts.” 

Other prediction markets that Robinhood partnered with Kalshi on, such as what the target Fed funds rate will be in May, remain live.

A Kalshi spokesperson said, “Kalshi believes in the value of regulation and operates under the comprehensive oversight of the Commodity Futures Trading Commission. We look forward to engaging with the state of New Jersey to resolve this matter.”

The statement did not address Robinhood’s decision to pull out of the sports markets in New Jersey. Robinhood also pulled out of a partnership the two companies had to offer Super Bowl betting under pressure from regulators. 

Dustin Gouker’s Closing Line first reported on the developments in New Jersey

Robinhood began offering event contracts for March Madness earlier this month. Kalshi, which is regulated by the Commodity Futures Trading Commission, offers event contracts on many sports, including tennis, golf, basketball and Formula 1. 

Kalshi is now battling regulators in several states. Nevada issued a cease and desist letter to the exchange earlier this month, noting that its event-based contracts on sports are illegal in the state. The Nevada Gaming Control Board then agreed to give Kalshi longer than the original 10-day deadline to address the matter. Massachusetts has also launched a probe

On Saturday, Kalshi announced it had filed suits in federal court against both the Nevada Gaming Control Board and the New Jersey Division of Gaming Enforcement. Kalshi founder Tarek Mansour said in a statement that “the threatened actions in Nevada and New Jersey seek to undermine not just Kalshi’s contracts, but the authority granted by Congress to the Commodity Futures Trading Commission.”

The issue, as alluded to in Robinhood’s statement, is whether these prediction markets are regulated federally (by the CFTC) or at the state level. If it’s the former, the model poses a threat to traditional sportsbooks like FanDuel and DraftKings, which are not available in states like Texas and California, and which must pay high state taxes on their sports betting markets. Currently, sports betting is legal in 39 states whereas Kalshi is live in all 50 states. 

While Kalshi’s sports betting offering includes mostly futures with a smattering of single-game events, it would be a greater threat to traditional sportsbooks if/when there are markets for player props, point spreads, and parlays. 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Mar 15, 2025; Fort Worth, TX, USA; UAB Blazers forward Yaxel Lendeborg (3) dribbles the ball upcourt against the North Texas Mean Green during the first half at Dickies Arena

NIL Is Shrinking the Pool of NBA Draft Entrants

Agents are now advising many players to stay in school.
Wisconsin cornerback Xavier Lucas (6) is shown during the first quarter of their game against South Dakota Saturday, September 7 , 2024 at Camp Randall Stadium in Madison, Wisconsin.

Wisconsin Sues Miami for ‘Tampering’ With Football Transfer

Xavier Lucas signed NIL deals in Madison before transferring to Miami.
Jun 19, 2025; Indianapolis, Indiana, USA; Oklahoma City Thunder forward Chet Holmgren (7) shoots the ball against Indiana Pacers center Tony Bradley (13) during the first half of game six of the 2025 NBA Finals between the Oklahoma City Thunder and the Indiana Pacers at Gainbridge Fieldhouse.

Pacers’ Tony Bradley Has Made Just $330K This Year Despite Finals Run

Bradley was signed by the Pacers on March 2 to a 10-day contract.
Apr 3, 2025; Los Angeles, California, USA; Los Angeles Lakers forward LeBron James (23) moves the ball up court ahead of Golden State Warriors forward Kevon Looney (5) during the first half at Crypto.com Arena.

Lakers’ $10B Valuation Is Historic, but Not Surprising. What Happens Next?

Details about the deal’s structure and the team’s future are scarce.

Featured Today

Apr 24, 2025; Green Bay, WI, USA; Penn State Nittany Lions defensive end Abdul Carter on the red carpet before the 2025 NFL Draft at Lambeau Field

‘More Is More’: The Elite Luxury Jewelers Decking Out Athletes

Meet the elite group of luxury designers crafting the biggest statement pieces.
Dec 5, 2024; Miami, FL, USA; FIFA president Gianni Infantino presents the FIFA Club World Cup trophy during the Club Word Cup draw at Telemundo Studios.
June 15, 2025

Revamped Club World Cup Is FIFA’s Billion-Dollar Gamble

The revamped soccer event debuts amid controversy.
Jun 10, 2025; Nashville, Tennessee, USA; United States head coach Mauricio Pochettino stands during the anthem against the Switzerland during the first at Geodis Park
June 14, 2025

Gold Cup Is Complicated for USMNT—but U.S. Soccer Has Its Eyes on..

Uncertain tournament success isn’t fazing forward-looking U.S. soccer.
Jan 24, 2017; Davidson, NC, USA; The Davidson Wildcats student section cheers during the first half against the Duquesne Dukes at McKillop Court at John M. Belk Arena. Davidson defeated Duquesne 74-60.
June 6, 2025

Every College Wants a Flashy Basketball GM Hire Right Now

The role is more important than ever, and the definition is ever-evolving.
Quincy Taylor

Several Americans Banned in British Basketball Game-Fixing Scandal

Five former Surrey Scorchers players were hit with lengthy gambling suspensions.
A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.
exclusive
June 13, 2025

FanDuel, Kalshi Have Discussed a Deal

Could FanDuel take an equity stake in Kalshi?
Mar 30, 2025; Spokane, WA, USA; LSU Lady Tigers guard Flau'Jae Johnson (4) shoots against UCLA Bruins center Lauren Betts (51) during the second half of a Elite 8 NCAA Tournament basketball game at Spokane Arena.
June 17, 2025

Louisiana Sports Betting Set to Aid LSU and Other State Schools

Louisiana lawmakers have been creative in finding state money for NIL.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Ted Leonsis unpacks basketball’s global rise, media rights, and portfolio ownership.
Fanduel
June 10, 2025

FanDuel, DraftKings Add Illinois Transaction Fee in Response to New Tax

FanDuel will charge 50 cents per bet starting Sept. 1.
May 1, 2024; Los Angeles, California, USA; A general overall view as Dallas Mavericks and LA Clippers players run across the Clippers logo at midcourt in the first half during game five of the first round for the 2024 NBA playoffs at Crypto.com Arena.
June 6, 2025

Kalshi’s Momentum Fuels Crypto.com’s Fight Over Sports Markets

Crypto.com cited a recent Kalshi court victory in its own fight against Nevada.
Illinois Gov. JB Pritzker speaks after giving his annual State of the State address on Wednesday, Feb. 19, 2025, in Springfield.
June 2, 2025

Illinois Passes New Sports Betting Tax in Middle of the Night

This is the second straight year Illinois approved a tax increase on sportsbooks.
May 18, 2025; Los Angeles, California, USA; Minnesota Lynx forward Napheesa Collier (24) looks to shoot against Los Angeles Sparks forward Dearica Hamby (5) during the first quarter at Crypto.com Arena.
May 27, 2025

Napheesa Collier Is Odds-On WNBA MVP Favorite After Caitlin Clark Injury

Collier and Clark had been close in the odds.