Illinois Gaming Board Takes Action Against Kalshi, Robinhood, and Crypto.com

April 3, 2025 Marija D

Kalshi, Robinhood, and Crypto.com. The letters, dated April 1, claim that the platforms are illegally offering contracts on sporting events, violating Illinois’ sports wagering laws.

Regulatory Warning on Sports Betting Laws

The letters define sports wagering under Illinois law, emphasizing that “No person or entity may engage in a sports wagering operation or activity in Illinois unless licensed by the IGB.” They also clarify 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.”

Unlike some regulatory orders, the IGB did not specify a deadline for Kalshi to comply with the directive to halt its activities.

Illinois is not alone in its stance against Kalshi and similar platforms. On Monday, the Ohio Casino Control Commission (OCCC) sent cease-and-desist notices to the same three companies for allegedly breaching Ohio’s sports betting laws. Meanwhile, last Friday, Kalshi initiated lawsuits against gaming regulators in Nevada and New Jersey, seeking declaratory and injunctive relief following similar legal warnings.

Legal Strategies in Flux Amid Executive Departure

Kalshi’s legal approach may shift following the announced resignation of its Chief Regulatory Officer and General Counsel, Eliezer Mishory, who is leaving to lead the DOGE team at the Securities and Exchange Commission. Regardless of leadership changes, the company will need to address specific legal concerns if it continues to challenge state regulators in court.

For example, in New Jersey, the Division of Gaming Enforcement cited a constitutional restriction that “wagering shall not be permitted on a college sport or athletic event that takes place in New Jersey or sport or athletic event in which any New Jersey college team participates regardless of where the event takes place.” This restriction led to Robinhood, which partnered with Kalshi to create a separate predictions market for the NCAA Tournament, removing market offerings in New Jersey after the East Region semifinals and finals were hosted in Newark.

While New Jersey’s cease-and-desist order focused on constitutional restrictions, the notices from Nevada, Ohio, and Illinois are primarily concerned with Kalshi’s alleged violation of state laws by offering contracts on sporting events without a proper license. Despite these regulatory warnings, Kalshi continues to promote its NCAA Tournament contracts on its website.

To date, Kalshi has reported $326.5 million in trading volume on contracts tied to the NCAA men’s basketball tournament. Additionally, contracts related to the women’s NCAA Tournament have seen $69.2 million in trading volume.

Recent News: Michigan Gaming Control Board Cracks Down on Offshore Gambling

The Michigan Gaming Control Board (MGCB) has intensified efforts to eliminate unlicensed online gambling in the state by issuing cease-and-desist letters to 10 offshore operators linked to Apex Dynamics Ltd. The Belize-based company is accused of violating Michigan’s gaming laws by offering unlawful casino-style games and imposing restrictive withdrawal conditions.

The MGCB determined that Apex Dynamics’ casino platforms were operating illegally in Michigan, breaching several state laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and the Michigan Penal Code. As a result, the regulator ordered the following operators to cease operations within 14 days: