US gambling news site “The Closing Line” reports that prediction markets platform Kalshi just ran into serious trouble in New Jersey. The state’s Division of Gaming Enforcement (DGE) says the company is running unauthorized sports wagering. Kalshi now has until Friday night to shut it down or face enforcement.

• New Jersey sent a cease-and-desist letter to Kalshi, claiming it violated laws by letting residents place unauthorized sports wagers. The DGE says Kalshi is not licensed to offer betting in the state. All bets placed by New Jersey users must be voided immediately.

• Kalshi’s betting markets for March Madness caught regulators’ attention. The company launched single-game betting-style markets on college basketball in all 50 states. In New Jersey, that includes games in Newark — which are banned under state law. The letter pointed out that New Jersey prohibits bets on in-state college teams or events held within the state. Kalshi’s markets reportedly covered both. This put the platform in direct conflict with the New Jersey Constitution and Sports Wagering Act.

• Kalshi partnered with Robinhood last week to expand its “sports event trading” product. That made it easier for New Jersey residents to access the betting-style markets. The DGE sent a similar letter to Robinhood, citing the same violations.

• The DGE demanded written confirmation by 11:59 pm Friday, March 28, that Kalshi had stopped offering sports wagering in the state. Failure to comply could lead to further legal action, including potential sanctions. The letter referenced Kalshi’s mobile app and website as active access points.

• In response, Kalshi stated: “Kalshi believes in the value of regulation, and operates under the comprehensive oversight of the Commodity Futures Trading Commission.” The company said it hopes to work with New Jersey to sort things out. No further comment has been made.

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