Kalshi’s Legal Battle: Challenging Nevada and New Jersey’s Gambling Regulations

• Kalshi Challenges Nevada and New Jersey Through Legal Action
• Company CEO Warns Gambling Authorities Against Exceeding Their Legal Authority
• Mansour Asserts That Prediction Markets Are Vital and Misunderstood Innovations

Kalshi, a renowned platform for sports prediction markets, has initiated legal proceedings against both Nevada and New Jersey. This move comes as a response to the gambling regulators in these states, who have issued cease-and-desist orders against the platform for its offerings related to March Madness games and predictions.

Kalshi Confronts DGE and NGCB

Instead of quietly retreating, Kalshi has chosen to confront both the New Jersey Division of Gaming Enforcement and the Nevada Gaming Control Board. They are challenging the actions of these regulators.

In a statement on LinkedIn, Kalshi’s CEO, Tarek Mansour, expressed his belief that these regulators are deliberately overreaching their authority. He described the situation as an attempt to suppress what he considers to be a critical innovation of the 21st century. Mansour also took to social media platform X to communicate the company’s objectives over the weekend.

Kalshi just filed suit in federal court against the states of Nevada and New Jersey. As promised, Kalshi will keep fighting for the right of prediction markets to thrive.Over the last decade, the concept of objective truth has been dangerously eroded by aggressive actions.

– Tarek Mansour (@mansourtarek_) March 30, 2025

Kalshi is not afraid to take on regulatory bodies concerning potentially contentious issues. The company previously initiated legal action against the Commodity Futures Trading Commission (CFTC) for its restriction against offering political prediction markets.

Kalshi contended that the CFTC lacked the authority to block them in this regard. Although a ruling has yet to be finalized, the platform continued to provide political prediction markets, leading many Americans to place predictions on the outcomes of the November Presidential election.

Currently, Kalshi is once again navigating legal and regulatory challenges, arguing that the DGE and NGCB are attempting to exert control over a company that falls outside their jurisdiction and legal oversight.

Kalshi Criticizes Regulatory Engagement

In another post on platform X, Mansour articulated that while both regulators have issued cease-and-desist orders, they have failed to engage with Kalshi to explore solutions. He emphasized the platform’s willingness to educate regulators about the significance and regulation of prediction markets.

‘Both states have issued cease and desist orders that fundamentally misunderstand prediction markets and undermine the foundation of U.S. financial markets, which are regulated by the federal government.

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.’

Mansour concluded by stating that the company had no alternative but to sue the regulators. Kalshi has experienced significant success during March Madness. In the initial two rounds, more than $250 million was traded on the platform, representing 8% of the projected total betting handle for March Madness. This figure has now approached $320 million, according to the platform’s data.

Mansour reiterated that prediction markets do not infringe upon gambling laws and represent a key innovation that should be allowed to flourish, rather than being hindered by excessive regulation.