NJ Governor Candidate Supports Kalshi, Prediction Markets
Jersey City Mayor Steven Fulop says "betting markets" can be better than polls, retweets Kalshi despite pushback from New Jersey regulator and Atlantic City trade group.
A candidate for governor in New Jersey expressed his support for prediction markets and their accuracy in interactions with Kalshi on Twitter/X on Saturday.
That’s despite the fact that Kalshi is suing New Jersey’s regulators — who are arguing that Kalshi is offering illegal sports betting in the state — and that a trade group believes Kalshi will hurt the state’s gambling industry.
Jersey City Mayor Steven Fulop interacted with someone talking about his odds to win the election on Kalshi here, saying that “betting markets” are “in many ways a good indicator that is better than polling.”
He then retweeted this from Kalshi:
Kalshi CEO Tarek Mansour also interacted with Fulop:
The Event Horizon reached out to Fulop’s campaign for comment, given the litigation regarding Kalshi’s status in New Jersey. A spokesperson offered the following statement.
The mayor isn’t opinioning on any lawsuit. He merely said that betting markets are often useful indicators of sentiment. We have seen many examples of this. It is another data point on what the public is thinking being that people are placing their own money at risk.
The campaign did not give comment regarding actions from New Jersey’s Division of Gaming Enforcement and concerns from the Casino Association of New Jersey in relation to Kalshi.
The NJDGE sent a cease-and-desist letter to Kalshi in late March:
The Division has accessed your mobile application and website, located at www.kalshi.com, and it has determined that your company, Kalshi Inc. d/b/a KalshiEX LLC and/or Kalshi (“Kalshi”), is listing unauthorized sports wagers for individuals located within the State of New Jersey. This activity constitutes a violation of the New Jersey Sports Wagering Act, which only permits licensed entities to offer sports wagering to patrons located in New Jersey.
Earlier this month, the Casino Association of New Jersey wrote to the Commodity Futures Trading Commission expressing its concern for Kalshi’s sports betting offering. From that letter:
We write today to share the Casino Association of New Jersey's concerns regarding "sports events contracts" being offered by Commodity Futures Trading Commission (CFTC) regulated entities. As the trade association that represents New Jersey's gaming industry, we are deeply concerned about the availability of sports events contracts, the economic impact it will have on New Jersey, and the consumer harm that may come to our citizens due to the lack of protections that the legal gaming industry is required to adhere to through state law. …
To protect New Jersey citizens, every wager must be authorized by our state gaming regulators, as well as any associated advertising. All platforms are tested for fairness, work with sports integrity monitoring companies, utilize geolocation for online operators and comply with age verification protocols. Operators are required to follow anti-money laundering controls, and we do not allow wagers to be made with cryptocurrency.
All operators must also have responsible gaming programs and work with the Division of Gaming Enforcement on the state's self-exclusion list. All of these policy choices were made intentionally to ensure that the legal sports betting industry in New Jersey provides a safe and responsible way to bet on sports and provide economic value to our state. In contrast, the sports events contracts that are being offered by CFTC-regulated companies provide no revenue to our state coffers, allow anyone 18 years old to bet on sports, and don't restrict betting on collegiate wagers, a direct violation of our state laws that New Jersey citizens voted on. Those that have chosen to self-exclude or struggle with problem gambling have unfettered access to these platforms that offer no responsible gaming resources, putting our residents and Americans across the country at greater risk.
As the Commission reviews these contracts, we ask that you respect the policy decisions made by New Jersey citizens, legislators, and regulators and not allow for sports event contracts to be offered. We appreciate the opportunity to share how the gaming industry operates in New Jersey and stand ready to be a resource.