New York Sues Kalshi Over Alleged Illegal Gambling Operation
New York has filed a lawsuit against prediction market platform Kalshi, accusing it of operating an illegal gambling service within state borders. The New York Attorney General’s Office claims that Kalshi is violating the state's gaming laws by accepting wagers without proper licensing and exposing residents—including those under age 21—to financial risks. The lawsuit seeks to block Kalshi from operating in New York, which hosts its headquarters, and demands restitution for customers who placed bets on the platform. This action follows similar legal moves by other states like Nevada, Arizona, Washington, and more against prediction markets such as Polymarket and Kalshi. While some states have attempted regulatory measures, federal agencies including the Commodity Futures Trading Commission (CFTC) assert exclusive jurisdiction over these platforms. Kalshi has faced additional scrutiny beyond state gambling laws; recent reports indicate that an individual with close ties to former President Donald Trump profited from insider-like bets on Kalshi. The company criticized New York’s legal action as politically motivated, warning it could drive users offshore and harm local consumers.
Topics: gambling regulation Kalshi New York AG prediction markets