Kalshi has been handed yet another cease-and-desist order, this time in the state of Arizona.
As reported by InGame, the Arizona Department of Gaming’s (ADG) chief law enforcement officer Douglas Jensen sent the order via a letter addressed to Kalshi CEO Tarek Mansour on 21 May.
This was later confirmed to EGR by an ADG spokesperson.
The ADG also told EGR that it sent the same order to fellow predictions markets platforms Robinhood and Crypto.com.
In the letter to Kalshi, Jensen acknowledged the platform’s, which is overseen by the Commodity Futures Trading Commission (CFTC), attempts to distinguish itself as an entity separate from sports betting.
However, Jensen stipulated that there is “no meaningful difference” between Kalshi’s offering and that of a regulated sportsbook.
Jensen said: “The Department recognises Kalshi’s attempt to legitimise its conduct by labelling it as an ‘innovation’ regulated by the Commodity Futures Trading Commission.
“In fact, there is no meaningful difference between buying one of your offered contracts and placing a bet with any other sportsbook.
“And, Kalshi is avoiding regulatory requirements in Arizona to include licensing and background investigations, the prohibition on wagers by persons under 21 years of age and requirements relating to integrity monitoring and problem gambling.”
Jensen went on to order the platform to shutter its operations in the Grand Canyon State, although no specific deadline was set for when this should occur.
He continued: “Given the lack of licensure and compliance with Arizona statutes and regulations related to event wagering, online gambling as operated by Kalshi in Arizona, whether through the website https://kalshi.com, the Kalshi mobile applications or otherwise, is illegal.
“The department requires that Kalshi cease gambling operations in Arizona and desist from engaging in those activities in the future. Failure to do so is further evidence of your ongoing knowing and willful violation of the law.
“This letter is intended only to place you on notice that the department is aware of Kalshi’s conduct and to direct you to take immediate steps to comply with Arizona law. Future actions may include the filing of criminal charges or a civil action against Kalshi and/or its principals or employees.”
Arizona becomes the seventh state to order Kalshi to cease operations, following on from New Jersey, Maryland, Nevada, Montana, Illinois and Ohio.
Kalshi has hit back against several of the regulators. The platform filed a lawsuit against New Jersey’s Division of Gaming Enforcement in March, leading to the award of a temporary restraining order (TRO) and preliminary injunction against the regulator in April.
The same month, the company was also granted a TRO in Nevada following a successful lawsuit against the Nevada Gaming Control Board.
Shortly after, Kalshi filed a lawsuit against the Maryland Lottery and Gaming Control Commission for causing “irreparable harm” to the company’s reputation.
Earlier this month, the CFTC dropped its legal challenge against Kalshi, bringing an end to a dispute which first began in November 2023.
The post Arizona becomes latest state to hit Kalshi with cease-and-desist order first appeared on EGR Intel.
Arizona Department of Gaming sends same orders to Robinhood and Crypto.com as list of territories opposing predictions markets grows
The post Arizona becomes latest state to hit Kalshi with cease-and-desist order first appeared on EGR Intel.