The New Jersey Division of Gaming Enforcement has ordered Kalshi and Robinhood to cease offering prediction markets related to sports events for New Jersey residents. This decision follows a cease-and-desist order issued on March 28, 2025, which claimed that the platforms had illegally provided sports wagering services. Residents are required to stop placing bets on athletic events and void any existing wagers. The companies must comply without penalties, and Robinhood has stated it does not believe it is violating state laws. Both firms recently collaborated for NCAA basketball tournament betting amid ongoing regulatory challenges for prediction market operators, which have been facing legal scrutiny in multiple states, including Nevada and Washington. Robinhood emphasized that its contracts related to prediction markets are federally regulated by the CFTC. The situation illustrates the complexities surrounding the regulation of sports betting and prediction markets in the US, particularly as businesses attempt to navigate various state laws.

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