Kalshi Reveals Significant Volume in March Madness betting Marketplace
Catch the Latest on Kalshi's Prediction Market: $500 Million Traded During March Madness, Yet Legal Hurdles Abound
By: Michael "Vegas" Savio | 04/11/2025 06:53
The Skinny
Kalshi, a prediction market operator, raked in over half a billion dollars in trades during March Madness. Despite the massive success, six states aren't feeling it and have dished out cease and desist letters. But a Nevada judge ain't having it and ruled the state doesn't got the power to regulate these kinds of markets.
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On the Radar
In-Depth Insights
Currently, Kalshi's prediction market operation is facing legal challenges from several states, even though it's federally regulated by the Commodity Futures Trading Commission (CFTC). Here's the scoop:
- Federal Rules vs. State Regs: Kalshi operates under federal law, specifically the Commodity Exchange Act, which it claims overrides state regulations. This argument is at the core of its legal disputes with states.
- Cease and Desist Orders Galore: Six states—New Jersey, Nevada, Maryland, Ohio, Montana, and Tennessee—have sent Kalshi cease and desist orders, claiming its operations violate local rules. Kalshi has fired back with lawsuits against some of these states, including New Jersey and Nevada, challenging state jurisdiction over federal-regulated activities.
- Nevada's Verdict: The Nevada Gaming Control Board demanded Kalshi to halt operations within the state unless licensed by the Nevada Gaming Commission. Kalshi requested additional time to address this order and is likely to contest it.
- Time for Court: Kalshi has filed motions, such as a reply brief in New Jersey and a preliminary injunction against Maryland, asserting that federal law overrides state regulations, especially since its contracts are approved by the CFTC. Kalshi's CEO is bullish about its federal regulatory status, insisting state laws don't apply.
In a nutshell, while Kalshi encounters legal troubles from several states, it insists federal law governs its activities, and it's putting its money where its mouth is by litigating these battles. The outcome of these legal proceedings will clear up the legal murkiness surrounding Kalshi's operations.
- Michael Savio, known as "Vegas" in the online casino world, provides an update on Kalshi's ongoing legal battles in the sports-betting industry.
- Kalshi, a prediction market operator, faced six states' cease and desist letters despite generating over $500 million in trades during March Madness.
- Despite these legal hurdles, a Nevada judge denied the state's attempt to regulate these markets, citing federal rules that allegedly override state regulations.
- In response to state demands, Kalshi has filed lawsuits challenging state jurisdiction over federal-regulated activities, including suits against New Jersey and Nevada.
- Michael Savio, the casino expert, continues to report on this unfolding story, with the outcome of these legal proceedings expected to bring clarity to the legality of Kalshi's sports-betting operations in 2025.
