Crypto.com and Kalshi Sue Maryland MD Over Sports Betting Cease-and-Desist Order
Crypto.com and Kalshi, a platform for prediction markets, have filed a lawsuit against the Maryland Attorney General following a cease-and-desist order regarding their sports betting operations. The order, issued last month, demanded that both companies halt their betting activities in the state, claiming that they violated Maryland law by offering unlicensed sports wagering.
The lawsuit, filed in federal court, argues that the order is unconstitutional and conflicts with federal laws governing digital currencies and online betting. Crypto.com and Kalshi assert that their services do not fit the traditional definition of gambling as outlined in Maryland statutes, as they involve predictions rather than direct wagering on game outcomes.
Moreover, the companies contend that the cease-and-desist order stifles innovation and economic growth within the digital betting landscape. They believe that their platforms provide unique opportunities for consumers to engage with sports in new ways and contribute to a burgeoning industry that is increasingly accepted in various jurisdictions across the U.S.
The lawsuit highlights the ongoing tensions between state laws and the rapidly evolving landscape of online and cryptocurrency-based platforms. With the popularity of sports betting rising nationwide, the plaintiffs argue for clarity and fairness in regulation that fosters innovation rather than inhibiting it.
Legal experts suggest that this case could set a significant precedent for the treatment of digital betting services in Maryland and potentially influence legislative discussions around the regulation of emerging financial technologies. As the case unfolds, the outcome may also prompt other states to reevaluate their approach to similar concerns about unlicensed betting operations.
Crypto.com and Kalshi’s challenge reflects a broader discourse on the intersection of technology, regulation, and consumer rights in the dynamic world of sports betting.
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