Sports betting in Illinois ordered to cease by Kalshi
Kalshi under investigation for unlicensed sports betting
Looks like trouble's brewing for Kalshi! The Illinois Gaming Board (IGB) is investigating the company for allegedly operating unlicensed sports betting, potentially violating the Illinois Sports Wagering Act. The board has given Kalshi a stern warning to clamp down on any such activities immediately or face the consequences, which could be as serious as legal action.
The CEO of Kalshi, Tarek Mansour, and the Chief Regulatory Officer and General Counsel, Eliezer Mishory, are in the heat of it, having been involved in the official communications about this matter. According to the investigation, Kalshi has been accepting wagers on various sports events through mobile apps, websites, and other digital platforms. But, you know what they say - only those with the proper licenses from the IGB are allowed to run sports wagering businesses in Illinois. If the Illinois Sports Wagering Act is anything to go by (230 ILCS 45/25-20(a)), unlicensed sports wagering activities aren't just tolerated - they're forbidden.
This isn't the first time Kalshi has faced scrutiny. Nevada, Ohio, and New Jersey regulators have raised similar concerns, even issuing cease-and-desist orders in the past. Kalshi, however, isn't rolling over. The company has taken a stand, venturing into the legal realm. They've taken on Nevada's gaming regulators in lawsuits, stating their operations fall under federal oversight, not state gambling laws.
Now, keep in mind that Kalshi's platform is all about offering event contracts, a bit different from traditional sports betting. The company claims this is what gives them an edge, allowing them to skirt state gambling laws. So far, courts in Nevada and New Jersey have backed them up, letting their operations continue. As for Ohio, there's nothing to report yet regarding any legal action against Kalshi.
Here's a quick rundown of the legal battles Kalshi has been ripped into:
- Illinois: The Illinois Gaming Board issued a cease-and-desist letter back in April 2025, claiming Kalshi engaged in unlicensed sports wagering, violating the Illinois Sports Wagering Act. But, the specific legal actions against Illinois haven't been detailed much in recent reports.
- Nevada: Nevada regulators didn't exactly welcome Kalshi with open arms. The company had to go to court, but they secured some judicial support that allows their operations.
- New Jersey: The New Jersey Division of Gaming Enforcement threw a cease-and-desist order in Kalshi's face in March 2025, alleging unauthorized sports betting operations. Kalshi retaliated with a lawsuit and secured a preliminary injunction, keeping their operations afloat in the state.
Ohio? Nothing's been brewing yet, but keep your eyes peeled!
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- The Illinois Gaming Board (IGB) is clearly investigating Kalshi for operating unlicensed sports betting, potentially violating the Illinois Sports Wagering Act.
- Any sports betting activities conducted by Kalshi via mobile apps, websites, and other digital platforms could be considered unlicensed wagering, according to the Illinois Sports Wagering Act (230 ILCS 45/25-20(a)).
- Despite facing similar concerns from Nevada, Ohio, and New Jersey regulators, Kalshi has taken a stand, arguing their event contracts are separate from traditional sports betting and fall under federal oversight.
- In Nevada and New Jersey, Kalshi has successfully contested legal actions against them, with courts allowing their operations to continue, albeit under certain conditions.
- Though no specific legal action against Kalshi has been reported in Ohio yet, the company's operations there are worth keeping an eye on.
