- New York Governor Kathy Hochul and Attorney General Letitia James have filed a lawsuit against KalshiEX, LLC (Kalshi) for operating an illegal gambling business through its prediction market platform.
- Kalshi allows users to bet on the outcomes of events including sports, culture, and elections, but the Office of the Attorney General found it to be an unlicensed gambling operation.
- The platform exposes New Yorkers, including those under 21, to financial and personal risks, violating state laws that require a minimum age of 21 for mobile sports betting.
- The lawsuit seeks a court order to stop Kalshi's operations, require the company to forfeit illegal gains, pay fines, and provide restitution to harmed users.
- This action is part of broader enforcement efforts by New York officials, including previous lawsuits against Coinbase, Gemini, and Valve, and an executive order banning state employees from using prediction markets.