Name: Connecticut Issues Cease and Desist to Kalshi Amid Legal Battle
Uploaded: 2025-12-04T15:23:50-05:00
Duration: 4 min 24 s
Description: Connecticut and other states have issued a cease and desist to Kalshi for violating anti-gambling laws. Daniel Wallach joins the show to discuss further.

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Connecticut and other states have issued a cease and desist to Kalshi for violating anti-gambling laws. Daniel Wallach joins the show to discuss further.

sportsbook news,legalization,state by state,operators,sports,Kalshi,Prediction Markets,Connecticut,Legal Battles,Cease and Desist

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Connecticut Issues Cease and Desist to Kalshi Amid Legal Battle

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Meanwhile, as you mentioned, there is, uh, some pushback on Alci, Robin Hood, Crypto.com in a on a state by state basis. It's not all of them, but Dan, it does appear that Connecticut is one of those states that seemingly wants to have the courts weigh in and until they do, they're issuing a cease and desist letter. I know that Calci has fought back in particular on some of these. Do you anticipate that happening here? They have already fought back. Calci filed a federal court lawsuit late last night within within a few hours or within at least a day of the cease and desist letter being issued because the danger is, uh, Connecticut demanded that Calci, Robin Hood and crypto.com immediately cease and desist their event contract activities within Connecticut and every day, every hour that Calci doesn't run to court, there's. Potential exposure under Connecticut civil and criminal laws and the the penalties for violating state anti-gambling laws is very severe. There could be individual liability on the officers, and each transaction could carry a civil penalty which could amount to 9 figures. So of course Calci's response is the same. That they have invoked in every other cease and desist letter when they get hit with one of those letters, they run into court right away and try to and try to frame the narrative around this argument of federal preemption because if they lose the race to the courthouse and the states file first in state court, the question then becomes whether these contracts are legal under state law, which is a much. Uh, much more disadvantageous, uh, situation to be in for Calci. So Calci's, um, successes initially in the federal courts stemmed from the fact that they won the races to the courthouse. But even today, uh, with the trend going decisively in favor of the states with two Nevada court rulings, a Maryland court ruling, and a Massachusetts federal ruling, I think increasingly the federal courts are, uh, giving a thumbs down. To Calci's premise that this federal preemption over state anti gambling and state sports betting laws. So the battle is going to be waged in the federal courts around the country and as states continue to win these preliminary battles, it may draw more states like Connecticut into the fray because now if you're New Hampshire, if you're Pennsylvania, uh, why wouldn't you issue a cease and desist letter if the states are winning these battles? And in in Massachusetts a very similar uh story progressing here Dan, is that correct? Uh, with one critical difference, that is the only forum in which the state sued first and brought it in state court under state law on the Commonwealth's own motion for a preliminary injunction, and Massachusetts won the battle of the venues there because Calci tried to remove it to federal court. Uh, Massachusetts filed a quick motion to remand, and the federal court sent it back to state court on the basis that there was no complete federal preemption. So now this is the equivalent of the Commonwealth of Massachusetts playing the home opener in Fenway Park with the state court judge applying state law and undoubtedly, not undoubtedly, but I would say there's a 99% likelihood. That the superior court judge on Tuesday morning will ultimately rule in favor of the Commonwealth of Massachusetts, which could make Massachusetts the first state in the entire country where Calci has to pull its sports event contracts, and they're claiming, Calci is claiming, well, they can't do it, it would irreparably harm them, so they may lose this battle and it could, it could have a cascading effect around the country in other pending federal cases. Oh, OK, uh, give us an update in New York. I know a big, uh, hearing coming up on the 15th. Uh, the New York State Attorney General was sued by Calci, similar situation to Connecticut and Massachusetts, actually similar to Connecticut, ease and desist letter within 5 hours. Calci ran to federal court. The hearing on the motion for a preliminary injunction filed by Calci will be heldly held the week of December 15th, and in a major development yesterday, a coalition of. Native American tribes filed an amicus brief in support of the New York Attorney General's legal position to push back against Calsci's request for a preliminary injunction. The tribes are undefeated, 3 and 0 when they're amici cua in all these national court cases. Their their briefs have made a seismic difference in how these cases turn out.

Connecticut Issues Cease and Desist to Kalshi Amid Legal Battle

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