- Enforcement counsel for the Kansas Racing and Gaming Commission said there are no imminent plans to halt the sports prediction markets
- The commission is monitoring the court cases in Nevada and New Jersey
- Four states have sent cease-and-desist notice to companies offering sports event prediction markets so far
Kansas sports betting regulators are monitoring the nationwide situation regarding sports event prediction contracts, but have no imminent plans to ask companies to stop offering the markets in the Sunflower State.
James Bain, enforcement attorney for the Kansas Racing and Gaming Commission, told Sports Betting Dime the commission is “not planning on sending cease-and-desist letters to prediction market platforms” at the moment.
Four states have sent orders to companies offering sports prediction market contracts, which has led to filed lawsuits against New Jersey and Nevada regulators stemming from the orders.
Wait and See Approach
Bain said the Kansas Racing and Gaming Commission will monitor the Kalshi lawsuits levied against Nevada and New Jersey gaming regulators after the states attempted to block the sports prediction markets before making its own decision.
KalshiEX filed lawsuits against both the New Jersey Division of Gaming Enforcement (NJ DGE) and Nevada Gaming Control Board (NGCB) this past week for cease-and-desist notices sent to the company regarding their sports event prediction markets.
The company believes neither of the state regulatory bodies have the right to intrude on the government’s “exclusive” authority to regulate prediction markets.
Counsel for Kalshi argues that Congress previously gave the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction to regulate futures trading on approved exchanges. As the CFTC has allowed Kalshi to launch its sports event contract markets, state law cannot “intrude on the comprehensive federal scheme for regulating designated exchanges.”
Bain said the commission will also wait for comments from the CFTC before making a decision on the markets. The CFTC will be hosting a public roundtable on prediction markets to help inform the commission’s approach to regulation and oversight of the sports event prediction contracts.
Illinois and Ohio have also sent cease-and-desist notices to Robinhood, Kalshi, and Crypto.com to cease offering the sports event contract markets in their states.
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Louisiana Gaming Regulators Also Assessing Situation
A representative for the Louisiana Gaming Control Board told Sports Betting Dime that the regulators are aware of the national developments against the sports event prediction markets.
Christopher B. Hebert, Chairman of the Louisiana Gaming Control Board, says the board is aware of the recent developments regarding sports event prediction markets and is “currently assessing the situation.”
The Louisiana Gaming Control Board is not averse to taking action against entities it believes offers illegal sports betting in its state. This previous August the control board sent Bovada, an offshore, unregulated sports betting and iGaming operator, a cease-and-desist notice to leave the state.
The LGCB demanded that Bovada immediately cease and desist from operating its online casino, allowing Louisiana residents to place online wagers, and offering any games and/or online casino services in the state such as sports betting, slots, and poker.
Kansas regulators have recently announced that they have no plans to stop sports prediction markets in the state. This decision comes after a period of uncertainty surrounding the legality of these markets, which allow individuals to bet on the outcomes of sporting events.
Sports prediction markets have become increasingly popular in recent years, with many people using them as a form of entertainment and a way to potentially make some extra money. However, some regulators have raised concerns about the potential for these markets to be used for illegal gambling activities.
In Kansas, regulators have taken a different approach. The Kansas Racing and Gaming Commission has stated that they do not view sports prediction markets as a form of gambling, as they are based on skill rather than chance. This distinction is important, as it means that these markets are not subject to the same regulations and restrictions as traditional forms of gambling.
While the decision by Kansas regulators to allow sports prediction markets to continue operating in the state may come as a relief to many fans and participants, it is important to remember that these markets still come with risks. As with any form of betting or gambling, it is possible to lose money, and individuals should always exercise caution and bet responsibly.
Overall, the decision by Kansas regulators to allow sports prediction markets to continue operating is a positive development for fans of these markets. By recognizing the skill-based nature of these markets and allowing them to operate legally, regulators are helping to ensure that individuals can continue to enjoy this form of entertainment in a safe and responsible manner.