New York sues Kalshi for allegedly running an ‘illegal gambling operation’
New York Attorney General Letitia James has filed a lawsuit against the prediction market Kalshi, alleging it operates an illegal gambling platform without a state license. The state seeks to block the company's operations and provide restitution to users.
Why it matters
This case underscores the ongoing legal battle between state regulators and federal agencies over the jurisdiction and legality of emerging prediction markets.
New York is suing Kalshi over claims the prediction market is running “an illegal gambling operation.” In the lawsuit, New York Attorney General Letitia James accuses Kalshi of violating state laws by accepting wagers without a license from the state’s gaming commission, as reported earlier by CNBC.
An investigation from the Office of the Attorney General (OAG) found Kalshi exposes New York residents “to serious personal and financial risk,” including people under the legal gambling age of 21, the lawsuit alleges. The state asks the court to block Kalshi — which is headquartered in New York — from operating in the state and to pay restitution to customers who placed bets on the platform.
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