Kalshi Takes Legal Action Against Maryland Gaming Authority Amid Cease-and-Desist Orders
Kalshi, a US market platform for predictions, has initiated legal action against the Maryland Lottery and Gaming Control Commission (MLGCC) following the issuance of a cease-and-desist order against its operations.
In response, Kalshi is seeking a temporary restraining order and preliminary injunction to counter the authority’s demands.
This lawsuit is part of an ongoing series of legal challenges Kalshi faces across multiple states, having received similar cease-and-desist orders that began with Nevada and New Jersey and later included Ohio and others.
At the end of March, Kalshi took legal action against the regulators in Nevada and New Jersey. CEO Tarek Mansour expressed frustration on X, stating: “We have made every effort to engage proactively with both Nevada and New Jersey and try to educate them about prediction markets, how they are regulated and how critical they are… but our words fell on deaf ears. I can’t speak to why they are taking this action, but prediction markets have proven their use, so it is a shame that these authorities are still trying to censor them. We are left with no choice: Sue.”
Read also: São Paulo Terminates Sponsorship with Viva Sorte
Now, it appears this issue has spread to Maryland.
Earlier in April, the MLGCC directed Kalshi, along with Robinhood and the North American Derivatives Exchange, to stop offering contracts related to sporting events, marking the sixth state to take similar action against Kalshi.
Gambling Insider participated in a recent KPMG Gaming Webcast Series, which provided insights into the ongoing dispute between Kalshi and the Commodity Futures Trading Commission (CFTC). Essentially, while Kalshi offers products that are CFTC-approved and thus enjoy certain operational protections, the question arises: do predictions on sports outcomes or other events, such as presidential elections, fall under gaming regulations?
This legal matter is intricate and is expected to evolve further in the coming months. Kalshi Maryland Gaming
