• Kalshi received a cease-and-desist letter in Arizona, the seventh state where the popular platform is facing a legal hurdle
• The Arizona Department of Gaming recognized the platform's offering of event trading as illegal, asking it to cease and desist its activities
• In addition to Kalshi, cease-and-desist letters were sent to Robinhood and Crypto.com

In the last few months, the fast-growing event trading platform, Kalshi, faced pushback and legal hurdles in several states.

The latest state to issue a cease-and-desist order against the popular event trading platform is Arizona.

Kalshi's offering in Arizona faces scrutiny from state gambling watchdog

There, Kalshi reportedly received a Cease-and-Desist letter from the Arizona Department of Gaming (ADG) last week.

Besides Kalshi, cease-and-desist letters were sent to Crypto.com and Robinhood.

As announced by InGame, the ADG sent a letter to the platform, explaining that its offering of "future events including sports" is in violation of the established regulatory framework.

The letter acknowledges that Kalshi offers future event contracts on sports, with the outcome being dependent on whether the person in question "predicted the result of the event and bought a contract for the correct outcome."

As explained by the ADG: "This amounts to Kalshi taking wagers, defined in A.R.S. § 5-1301(23)(a) as "a sum of money or thing of value risked on an uncertain occurrence"."

In addition, the Department of Gaming reiterated that offering event wagering in Arizona is only permitted in cases where the operator has a valid license.

"Kalshi is not licensed and its operation of event wagering in Arizona is illegal," the ADG wrote in its letter.

The regulatory body said that the event trading platform is avoiding regulatory requirements in the state, as well as restrictions that limit wagering to persons above the age of 21 years of age.

In light of this, the ADG asked Kalshi to "cease gambling operations in Arizona and desist from engaging in those activities in the future."

Per the letter, the platform would be violating the state's laws knowingly and willfully if it fails to comply with the order.

The recently sent letter was signed by ADG's Chief Law Enforcement Officer, Douglas Jensen.

Kalshi's legal woes continue, Robinhood and Crypto.com also receive cease-and-desist letters in Arizona

The regulatory body's actions in Arizona mark the seventh state where Kalshi is having trouble.

Late last month, the leading platform scored a temporary legal victory in its fight against the Division of Gaming Enforcement in New Jersey.

At the time, Kalshi secured a temporary injunction from a federal court.

This temporary injunction sided with the platform's position that gambling regulators have no remit to regulate its activities, which fall under the responsibilities of the Commodity Futures Trading Commission on a federal level.

Not unexpectedly, the company considered similar federal lawsuits in other states where it faced cease-and-desist orders.

Besides Kalshi, ADG has reportedly sent letters to other sports event contract platforms, including Crypto.com and Robinhood.

The two platforms have reportedly received similar letters to the one sent to Kalshi.

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