Kansas Regulators Have No Immediate Plans to Halt Sports Prediction Markets

• 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.