New York sues prediction market Kalshi as unlicensed gambling platform

Published Jul 31, 01:26 PM UTC

New York State has filed a lawsuit against Kalshi, a prediction market platform, accusing it of operating as an unlicensed gambling business. The suit, filed on behalf of Governor Kathy Hochul and Attorney General Letitia James, seeks to bar Kalshi from offering sports and event betting in the state without a gaming license. New York is demanding an accounting of customer bets, losses, and company gains, as well as restitution, damages, and civil penalties, including a penalty of three times Kalshi's gains from state activities plus $100,000 for each unauthorized sports wager. The lawsuit alleges Kalshi allows users aged 18-20 to wager and lists markets involving New York college teams, both prohibited for licensed sportsbooks. Kalshi, valued at $40 billion, faces growing legal challenges, though it recently won a preliminary injunction in Minnesota against a state ban on prediction markets. The CFTC claims federal jurisdiction over such markets.