Kalshi just got a warning shot from Maryland regulators. The state’s Lottery and Gaming Control Commission has ordered the company to halt all sports-related contract offerings immediately. This Kalshi cease and desist letter accuses the firm of illegal gambling activity in the state.

  • Maryland law requires that any gaming or sports wagering activity be expressly authorized by statute and overseen by the Maryland Lottery and Gaming Control Commission. Kalshi’s contracts are seen as sports wagers under Maryland’s legal definitions. Offering these without a license is not allowed.

  • The Commission says only licensed operators may offer sports wagers in Maryland. These operators must hold a mobile sports wagering license or a facility license and offer wagers only on approved sporting events. Kalshi does not appear on the list of licensed entities or approved wagering offerings.

  • According to Kalshi’s own letter to the U.S. Commodity Futures Trading Commission, users purchase contracts to bet on outcomes like championship wins. Buyers can trade positions freely, and payouts depend on the final results. Maryland equates this to traditional sports betting.

  • The cease and desist letter also points out that Kalshi is not registered to conduct business in Maryland. The state’s Department of Assessment and Taxation does not list Kalshi, which could be an additional violation under Maryland’s Business Regulation code.

  • Regulators say Kalshi is actively conducting business in Maryland by allowing access to its platform and selling unlicensed contracts. “The purchase of the Contract is indistinguishable from the act of placing a sports wager,” the Commission noted in its statement.

  • The Commission demands Kalshi confirm within 15 days that it has stopped its activity in the state. Further enforcement could follow if the company fails to comply. Questions are directed to the Commission’s Managing Director of Gaming, Michael Eaton.

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