New York sues Kalshi, alleges it offers a gambling platform 'plain and simple'
The State of New York has filed a lawsuit against prediction market platform Kalshi, alleging it operates as an unlicensed gambling business. The state is seeking significant financial penalties and an injunction to stop the company from offering wagers on sports and political events to New York residents.
Why it matters
This legal action highlights the intensifying regulatory conflict between state authorities and the emerging prediction market sector, which is currently testing the boundaries of federal versus state financial and gaming laws.
New York sued prediction-market Kalshi , alleging it offers sports and event wagers in the state without a gaming license.
The petition, filed in the New York Supreme Court on Friday, asks a judge to bar the company from operating an unlicensed gambling business and seeks an accounting of customer bets, losses and company gains, plus restitution, damages and civil penalties.
The state is seeking a penalty equal to three times Kalshi’s gains from the activity, plus $100,000 for each unauthorized or attempted offer of sports or mobile sports wagering, according to a statement published by Governor Kathy Hochul and Attorney General Letitia James.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in