New Jersey Regulator Directions Robinhood, Kalshi to Halt Sports Betting

A New Jersey regulation has ordered Kalshi and Robinhood to prevent giving forecast areas based on sporting activities to New Jersey visitors. &nbsp,

Robinhood partnered with Kalshi earlier this month to build a projection business focused on March Madness, the NCAA basketball game. &nbsp,

In a cease-and-desist-order dated Thursday, which was viewed by , the New Jersey Division of Gaming Enforcement alleged the trading platforms have improperly offered sports wagering service in The Garden State. The regulation called for both companies to cease allowing New Jersey people to place wagers on sports events and vacuum existing sports-related betting from individuals living there. &nbsp,

Robinhood and Kalshi may comply with the order by the end of March 28 or experience police steps, according to the letter. &nbsp,

” This letter may serve as official recognize that Robinhood]and Kalshi], by facilitating and/or accepting illicit activities wagering from people within the State of New Jersey, is engaging in exercise that is unconstitutional under not only New Jersey laws, but New Jersey’s Constitution”, NJGDE Interim Director Mary Jo Flaherty said in the email. &nbsp,

The state controller added that the trading websites ‘ actions violate the New Jersey Sports Wagering Act, which “only permits licensed companies to give sports wagering to customers located in New Jersey” .&nbsp,

Nearly two weeks before, Robinhood launched its March Madness prediction markets powered by Kalshi to capitalise on merchants ‘ growing desires for sports betting. Legal sports wagers exceeded$ 140 billion in 2024, up roughly 23 % from the year prior, CBS Sports reported. &nbsp,

But, forecast market providers such as Kalshi have encountered various regulatory hurdles as they aim to solve that growing business. &nbsp,

Earlier this month, Kalshi received orders from regulators in Nevada to stop offering derivatives trading on professional and college athletics events in the state. And this week, Barrons reported Washington state regulators are considering issuing Kalshi a similar directive.

” 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”, Robinhood said through a spokesperson. ” 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”.

A Kalshi spokesperson told that the company might comment later.