• Loading stock data...
Saturday, October 18, 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

Auburn Tigers head coach Bruce Pearl acknowledges the crowd after the game as Auburn Tigers men's basketball takes on Texas A&M Aggies at Auburn Arena in Auburn, Ala., on Saturday, Feb. 12, 2022. Auburn Tigers defeated Texas A&M Aggies 75-58.

Bruce Pearl Joining TNT As College Hoops Analyst

Pearl retired as Auburn Tigers coach last month.
Oct 14, 2025; Birmingham, AL, USA; Arkansas Razorbacks head coach John Calipari talks with the media during SEC Media Days at Grand Bohemian Hotel.

SEC Coaches Sound Off on NIL, Revenue-Sharing: ‘Upside Down’

John Calipari doesn’t want to become “transactional.”
Oct 9, 2025; Rosemont, IL, USA; Big Ten Commissioner Tony Petitti speaks during Big Ten MenÕs Basketball Media Days at the Donald E. Stephens Convention Center.

In an Expanded March Madness, Big Ten Favors Straight Seeding

Discussion around expanding the tournament continues to escalate.
Inside NCAA Headquarters located in Indianapolis on Friday, March 10, 2023. Ncaa President Charlie Baker

NCAA Approves Plan to Let D-I College Athletes Bet on Pro Sports

The proposal still needs to be approved by D-II and D-III committees.

Featured Today

May 27, 2025; Indianapolis, Indiana, USA; Indiana Pacers guard T.J. McConnell (9) shoots a three point basket over New York Knicks guard Josh Hart (3) during the third quarter of game four of the eastern conference finals for the 2025 NBA Playoffs at Gainbridge Fieldhouse

NBA Stars Swap Wine With League Friends and Foes

A wine-exchange tradition emerged from the bubble season’s close quarters.
May 25, 2025; Indianapolis, Indiana, USA; Derek Jeter walks the red carpet on Sunday, May 25, 2025, ahead of the 109th running of the Indianapolis 500 at Indianapolis Motor Speedway
October 16, 2025

The Players’ Tribune Is Still Kicking 11 Years Later

Founder Derek Jeter is still closely involved in the publication.
Las Vegas Aces center A'ja Wilson (22) celebrates with her teammates after her last second shot to take the lead 90-88 against the Phoenix Mercury in Game 3 of the WNBA Finals at Mortgage Matchup Center in Phoenix on Oct. 8, 2025.
exclusive
October 10, 2025

Standoff Over WNBA’s Future Has Dominated Finals

CBA negotiations have stolen the spotlight from the Aces’ dominant performance.
Paul Cartier
October 5, 2025

Sports Organists Are Still Thriving in the Era of Raucous Arena Music

“When they walk out and they see a real organ guy, it’s like, ‘Wow.’”
Jenny Just

Austin FC Co-Owner: Teach Your Daughters to Play Poker

She calls poker a “mind sport” like chess that teaches important life skills.
Sep 18, 2025; Orchard Park, New York, USA; Buffalo Bills quarterback Josh Allen (17) runs the ball against the Miami Dolphins in the second half at Highmark Stadium.
exclusive
September 25, 2025

Kalshi, Polymarket Sought to Buy Prediction-Market Platform Novig

Novig is available in close to 40 states.
NYSE
October 7, 2025

NYSE Owner Pours $2B Into Polymarket at $8B Valuation

Prediction markets keep pushing further into the mainstream.
Sponsored

How Jenny Just Is Shaping the Future of Sports Ownership

Jenny Just on bringing her investment experience to sports ownership.
September 12, 2025

FanDuel, Jaguars Reach $5M Deal Over Employee Theft

A Jaguars employee stole $20 million and gambled much of it with FanDuel.
Sep 8, 2025; Chicago, Illinois, USA; Chicago Bears quarterback Caleb Williams (18) rushes the ball past Minnesota Vikings safety Theo Jackson (26) during the second half at Soldier Field.
exclusive
September 10, 2025

Americans See Little Difference Between Prediction Markets and Betting

A survey found 85% of respondents believe sports event contracts are gambling.
Sep 4, 2025; Philadelphia, Pennsylvania, USA; Philadelphia Eagles cornerback Adoree' Jackson (8) tackles Dallas Cowboys wide receiver CeeDee Lamb (88) during the third quarter of the game at Lincoln Financial Field.
September 5, 2025

Kalshi’s $27M NFL Opener Runs Into Tribal Challenge

California Tribes want Kalshi forced to implement geofencing.
Eagles
September 4, 2025

FanDuel Paying $80K for Eagles Trains Amid Transit Funding Fight

The gambling company is giving stopgap transit funding in Philadelphia.