Contentious Past Actions Resurfacing Against Kalshi in Maryland
Take It to the Court: Kalshi's Legal Battle Against Maryland's Cease-and-Desist Order
By: Mike Smith06/06/2025 07:15
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Kalshi, a prominent player in the sports event prediction market, is currently embroiled in a court battle against a cease-and-desist letter from Maryland. In this ongoing saga, a federal judge has raised eyebrows with questioning lawyers over their contradictory arguments and doubts about the Commodity Futures Trading Commission's (CFTC) authority to override state regulators.
Maryland's Cease-and-Desist Letter and Kalshi's Response
In April 2025, the Maryland Lottery and Gaming Control Commission (MLGCC) sent Kalshi a cease-and-desist letter alleging that Kalshi's sports event contracts violate state gambling laws. The Commission claimed that these contracts resembled sports wagers and, as such, required state licenses.
Kalshi retaliated by filing a lawsuit challenging the state's authority to regulate its activities and asserting that it operates under federal oversight rather than state gambling laws.
A Federal Judge Weighs In
A federal judge questioned Kalshi's lawyers over their contradictory arguments, expressing skepticism about the company's position on state regulatory authority versus federal oversight.
The CFTC's Role
The CFTC, the federal regulator, has been at the heart of Kalshi's defense. Last year, Kalshi won a significant case against the CFTC, which affirmed the CFTC's jurisdiction over Kalshi's prediction markets for election-based contracts.
Kalshi argues that under federal law and CFTC oversight, it should not be subject to state gambling regulations. However, states are appealing to the CFTC to ban prediction markets from offering sporting event contracts, escalating the tension between federal regulatory authority and state gambling laws.
The Future of Regulation
As of June 2025, this legal dispute regarding the balance of power between federal authorities and individual states in the domain of sports betting and prediction markets remains unresolved. Kalshi and similar platforms face multiple legal challenges in states like Kentucky, Illinois, Massachusetts, Ohio, and South Carolina, where their sports event contracts are seen as disguised sports betting.
Stay tuned for updates on this ongoing case as Mike Smith continues to provide you with the most reliable and up-to-date news in the US online casino industry!
Kalshi's ongoing court battle against Maryland's cease-and-desist order centers around sports event prediction markets. This legal battle raises questions about the regulatory authority of state gambling laws, specifically in regard to Kalshi's activities, which the company argues fall under federal oversight by the Commodity Futures Trading Commission (CFTC). As a seasoned insider in the US online casino industry, Mike Smith covers this story, delving into the intricacies of sports betting, sports, sports-betting, and their legal implications in Kalshi's case.
