Arizona Bans Prediction Markets: ADG Orders Crypto.com, Kalshi, Robinhood to Shut Down
Several states, including Arizona, have taken a stance against prediction market games. The Arizona Department of Gaming (ADG) has ordered three major platforms to halt operations, citing regulatory concerns.
The ADG targeted Crypto.com, Kalshi, and Robinhood, all offering sports-event contracts. The department's position against Kalshi was clear, suing the platform for allegedly operating as an unlicensed stock market futures exchange without proper oversight. ADG officials slammed Kalshi's attempts to legitimize its conduct, stating there's 'no meaningful difference' between its contracts and traditional bets.
Prediction markets allow consumers to buy shares in event outcomes, potentially winning or losing money. The ADG accused Kalshi of offering wagers to people under 21 and lacking safer gaming tools. Despite cease-and-desist orders, Kalshi continues to fight for its place, launching lawsuits against state regulators. Sports-event contract providers argue their products do not constitute wagering due to their format, but regulators maintain their stance.
The Arizona Department of Gaming's actions reflect a broader regulatory concern over stock market today games. While providers argue their products' unique format, regulators insist on proper oversight and safer gaming tools. The future of these markets remains uncertain as legal battles continue.
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