New York Sues Prediction Market Kalshi, Alleging It Operates as an Unlicensed Gambling Platform
New York State has filed a lawsuit against prediction market platform Kalshi, accusing it of operating as an unlicensed gambling business. The state alleges that Kalshi offers sports and event betting without the necessary gaming license in New York. Authorities are seeking to block Kalshi from continuing its operations within the state while also requesting financial accountability for customer bets, losses, and company profits. The lawsuit includes demands for restitution, damages, civil penalties, and a penalty equal to three times Kalshi's gains plus $100,000 per unauthorized sports wager. The legal action is being pursued on behalf of Governor Kathy Hochul and Attorney General Letitia James. Despite this challenge in New York, Kalshi recently won a court battle in Minnesota where it was allowed to continue operating after the state law banning prediction markets was found potentially unconstitutional.
Topics: gambling regulation Kalshi New York lawsuit prediction markets