New York Sues Kalshi Over Alleged Illegal Gambling Operation
New York has filed a lawsuit against prediction market platform Kalshi in Manhattan state court, accusing it of operating an illegal gambling business. The state claims that Kalshi is not registered with the New York State Gaming Commission and violates both its constitution and laws by accepting wagers without proper licensing. Kalshi responded to the lawsuit by calling it 'political theater' and emphasized that as a federally licensed exchange under the Commodity Futures Trading Commission (CFTC), it should be exempt from state gambling regulations. The company has previously sued New York after receiving a cease-and-desist letter, but its requests for injunctions have been denied. The lawsuit seeks restitution to users who traded on Kalshi's platform and imposes penalties of up to $100,000 per instance of offering sports wagering. It also calls for a permanent injunction against the company.
