New York officials call Kalshi an 'illegal gambling operation' in new lawsuit
New York state officials have filed a lawsuit against the prediction market platform Kalshi, labeling it an illegal gambling operation. The state seeks to halt the platform's operations and forfeit profits, while Kalshi maintains it is a federally regulated exchange.
Why it matters
This case highlights the ongoing jurisdictional conflict between state gambling regulators and federal financial oversight regarding the rapidly expanding prediction market industry.
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New York officials sued prediction market platform Kalshi for potentially billions of dollars on Friday, calling it an “illegal, unlicensed gambling operation” that includes sports wagering as the state seeks to halt its operations and force the company to forfeit its profits.
New York joins a growing number of states filing lawsuits against Kalshi and other companies in a dispute with President Donald Trump’s administration over who regulates the fast-growing prediction market . Kalshi and other platforms argue they are federally licensed and regulated, and states have no authority to govern them.
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