NY sues prediction market Kalshi alleging it's an illegal gambling operation
5 hours ago
- New York Attorney General Letitia James is suing Kalshi, a major prediction market, for operating an illegal gambling platform without a state license or paying related taxes.
- The lawsuit seeks to enjoin Kalshi's operations, impose fines, order restitution, and forfeit profits, citing risks like underage betting and gambling addiction.
- Kalshi argues the lawsuit is political theater, claims it is federally licensed by the CFTC, and warns that shutting it down will drive New Yorkers to offshore platforms.
- The case highlights a broader legal battle over whether state gambling commissions or the CFTC should regulate prediction markets, with conflicting court rulings across states.
- Other states—including Rhode Island, Nevada, Michigan, and Washington—have also sued or restricted Kalshi, while the CFTC has intervened to assert exclusive federal jurisdiction.