New York sues Kalshi over 'illegal gambling operation'
New York sued Kalshi on Friday, alleging the prediction market represents an illegal, unlicensed gambling operation. The lawsuit accuses Kalshi of ignoring the state laws — including those barring bettors under 21 from placing mobile sports wagers — and failing to register with its gaming commission. Attorney General Letitia James called prediction markets "gambling platforms, plain and simple." Kalshi, which is headquartered in New York, countered that it is only subject to federal oversight and labeled the suit "political theater." New York seeks for Kalshi to pay fines equal to triple its gains.
New York filed a lawsuit against Kalshi on Friday, alleging that the prediction market operates as an illegal and unlicensed gambling business. The state claims the company has violated multiple regulations governing wagering activities.
The lawsuit accuses Kalshi of disregarding state laws, including restrictions that prohibit bettors under 21 from placing mobile sports wagers. It also alleges the company failed to register with New York’s gaming commission.
Attorney General Letitia James described prediction markets as “gambling platforms, plain and simple.” Her office is seeking strong action against the firm for what it views as unauthorized operations.
Kalshi, which is headquartered in New York, rejected the claims. The company argued that it falls only under federal oversight and dismissed the lawsuit as “political theater.”
New York is seeking financial penalties equal to triple Kalshi’s gains from its activities in the state. The case highlights ongoing tensions between emerging prediction markets and traditional state gambling regulations.
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