New York Sues Kalshi Over Alleged Illegal Gambling Operations
The New York Attorney General’s office, along with Governor Kathy Hochul, has filed a lawsuit against prediction market platform KalshiEX, LLC for allegedly operating an unlicensed gambling business in the state. The suit seeks to halt operations permanently and includes demands for fines, restitution, profit forfeiture, treble damages on all gambling proceeds, and penalties of $100,000 per customer solicitation—potentially totaling up to $36 billion. New York claims Kalshi has not obtained a state gaming license or paid required taxes. The lawsuit also criticizes the platform for allowing users as young as 18 to trade on it, violating New York’s age requirement of at least 21 years old for mobile sports betting participants. In response, Kalshi dismissed the suit as 'political theater' and emphasized its federal licensing by the Commodity Futures Trading Commission (CFTC), which is seeking a court order to block enforcement actions against the company. This legal action follows previous cease-and-desist orders from New York’s gaming commission in October 2025, with courts recently rejecting Kalshi's attempt to block those orders. The case adds to an ongoing national debate over whether states can regulate prediction markets under federal jurisdiction.
Topics: gambling regulation New York state lawsuit prediction markets