Lawyer Departs from Kalshi to Assume DOGE Position Amidst escalating Legal Hurdles for the State
In a significant shift, Eliezer Mishory, former chief legal and regulatory officer at prediction markets platform Kalshi, has moved to the Department of Government Efficiency (DOGE) in April 2025. The move comes as Kalshi faces a challenging regulatory environment, with several states, including New Jersey and Nevada, taking action against the company.
Last week, the New Jersey Division of Gaming Enforcement (NJDGE) issued a cease-and-desist letter to Kalshi, citing operational issues related to sports-linked derivatives. Similarly, the Nevada Gaming Control Board (NGCB) has instructed Kalshi to halt operations in the state due to the lack of approval from the Nevada Gaming Commission (NGC) for such activities.
In response, Kalshi has taken legal action, filing lawsuits against both New Jersey and Nevada. However, as of this writing, neither Mishory, DOGE, Kalshi, nor the Securities and Exchange Commission (SEC) have commented on the speculation regarding Mishory's departure and new role.
Mishory's new role at DOGE involves overseeing efforts related to the SEC. This is not the first time Mishory has worked closely with the SEC, as he previously worked under Brian Quintenz, who President Trump recently appointed to lead the Commodities Futures Trading Commission (CFTC). Quintenz is also a Kalshi board member.
The SEC has recently announced a major reorganization, combining its 10 regional offices to cover broader geographic areas, resulting in a paring of staff. This reorganization could potentially impact the regulatory landscape for companies like Kalshi.
Moreover, the SEC is expected to soon hold a roundtable on event contracts, which could provide much-needed regulatory clarity for prediction markets like Kalshi. The commission's actions could have significant implications for the prediction markets industry, which has faced scrutiny over potential infringements on tribal sovereignty and impacts on tribal gaming revenue.
Meanwhile, Mishory's departure from Kalshi has been reported by various media outlets. He is reported to have left his role as general counsel at the company. Interestingly, the report of his move to DOGE was tied to the SEC.
In addition to the issues faced by Kalshi, other states, including Connecticut, Illinois, and Ohio, are pressing the company to halt offering sports derivatives in their jurisdictions. There is speculation that Washington State, which doesn't allow mobile sports betting, could follow a similar path.
The Department of Government Efficiency (DOGE) is also reportedly bringing on some employees from the SEC while granting them access to select SEC systems. This move could further impact the regulatory landscape for companies like Kalshi.
Hundreds of staffers are expected to leave the SEC in the coming days due to a spate of resignations. This could potentially create further challenges for companies operating in the prediction markets and gaming sectors, as they navigate the complex regulatory environment.
In conclusion, Eliezer Mishory's move from Kalshi to DOGE comes at a critical time for the prediction markets industry. As Mishory takes on a role overseeing DOGE efforts related to the SEC, his background in regulatory affairs could influence federal agency reforms, including those related to the SEC, and potentially shape the regulatory future for companies like Kalshi.
- Eliezer Mishory's new role at the Department of Government Efficiency (DOGE) involves overseeing efforts related to the Securities and Exchange Commission (SEC), an organization he has previously worked with.
- The SEC's recent reorganization, combining its 10 regional offices to cover broader geographic areas, could potentially impact the regulatory landscape for companies like Kalshi.
- Amidst the challenging regulatory environment, with several states taking action against Kalshi, rumors of Mishory's departure from the company have been circulating, with his move to DOGE being tied to the SEC.
