Sports betting regulators in Illinois have set their sights on eradicating prediction market platforms. The Illinois Gaming Board sent cease-and-desist orders to Kalshi, Robinhood, and Crypto.com dated April 1, claiming that those companies are operating illegally without a sports betting license with their sports-event outcome contracts that act like wagers. Kalshi, which burst on the scene last fall with election trading markets, got into the sports outcome business earlier this year with Super Bowl and March Madness markets. The company linked with Robinhood to list those offerings on its popular trading platform. “The IGB is aware that Kalshi is engaged in sports wagering activity in Illinois over the internet and on mobile devices,” the regulatory body said in a letter to Kalshi . “The IGB has neither licensed nor authorized Kalshi to engage in sports wagering activity. Consequently, Kalshi’s activity constitutes illegal gambling in violation of Illinois law. Accordingly, Kalshi and anyone affiliated with its operations are directed to cease and desist this illegal activity.” The IGB added that failure to comply with the order may result in civil or criminal penalties. Cease-and-desist letters with the same wording were sent to Robinhood and Crypto.com saying that both are in violation of Illinois law, which states, “No person or entity may engage in a sports wagering operation or activity in Illinois unless licensed by the IGB,” and that, “it is unlawful to knowingly establish, maintain or operate an Internet site that permits a person to make a wager upon the result of any sport, game, contest, political nomination, appointment or election via the Internet without an IGB-issued license.”
CONTINUE READING
