Kansas regulator “may get involved” in prediction markets crackdown 

The Kansas Racing and Gaming Commission (KRGC) has said it is “monitoring” legal developments across the US before it decides whether to take its own regulatory action against platforms offering sports event contracts.

All three of Kalshi, Robinhood, and Crypto.com have been hit with multiple cease-and-desist orders in recent weeks from several state gaming regulators for allowing users to trade sports event contracts. 

In the last seven days, the Illinois Gaming Board (IGB) and Ohio Casino Control Commission (OCCC) have issued cease-and-desist orders in the direction of the three aforementioned companies.

In the eyes of both regulators, the trio are effectively offering unlicensed sports betting to state residents, circumventing rules and costs that licensed sportsbooks face.

However, when approached for comment by EGR North America, Randy Evans, the KRGC’s government relations manager, has disclosed that the state is “not planning on sending cease-and-desist letters to prediction market platforms.” 

Evans added that the KRGC is “monitoring” court proceedings in New Jersey and Nevada, where Kalshi has filed lawsuits against both the New Jersey Division of Gaming Enforcement (DGE) and Nevada Gaming Control Board (NGCB). 

Kalshi has argued that the cease-and-desist orders do not take into account the fact its model is based on peer-to-peer swaps, rather than that of a traditional sportsbook. 

A hearing between Kalshi and the DGE initially scheduled for April 2 was adjourned, though the court dispute could come to a conclusion by the end of the month. 

The KRGC has added it “may get involved” based on the outcomes of those court cases, while it is also awaiting comment from the Commodity Futures Trading Commission (CFTC), the federal authority that regulates derivatives markets. 

Kalshi is of the belief that state-level regulators such as the KRGC do not possess the authority to regulate its sports event contracts, a task reserved for the CFTC. 

So far, Nevada, New Jersey, Ohio, and Illinois are the only four states to hit Kalshi with cease-and-desist orders, with all but Nevada also setting their sights on retail brokerage Robinhood. 

Ohio and Illinois are the only states to directly address Singapore-based cryptocurrency exchange Crypto.com. 

Elsewhere, the Connecticut department of consumer protection’s (DCP) gaming division has told EGR North America that it has been investigating Kalshi since “the fall” last year. 

However, the regulator did not reveal when its investigation would conclude, nor what actions could be taken as a result of the probe.