The Division of Gaming Enforcement (DGE)  issued a formal order Thursday to Kalshi and Robinhood requiring the company to stop offering prediction markets akin to New Jersey sports betting.

The order said Kalshi & Robinhood violates New Jersey law despite event trading being legal at a federal level, regulated by the Commodity Futures Trading Commission.

The DGE notified Kalshi & Robinhood that its “event-based contracts” violate Nevada law. It detailed multiple New Jersey Statutes and New Jersey Gaming Commission regulations the company is in violation of. 

It said violations are subject to criminal and civil penalties, while “future unlawful activity will be deemed willful violations.”