New York sues prediction market platform Kalshi alleging ‘illegal gambling operation’
Summary
New York state sued the prediction market company Kalshi, calling it an illegal gambling business. The state wants to stop Kalshi’s operations and make the company give up its profits. Kalshi says it is regulated by the federal government and that states cannot control it.Key Facts
- New York officials filed a lawsuit against Kalshi in Manhattan’s state Supreme Court.
- The state claims Kalshi operates without a state license and breaks gambling laws.
- New York wants Kalshi to forfeit illegal profits, pay back consumers, and face fines.
- Kalshi and similar platforms say they have federal licenses and are not traditional gambling.
- The lawsuit argues Kalshi lets users aged 18 to 20 participate, but New York requires bettors to be 21 or older.
- New York also sued other prediction market platforms like Coinbase and Gemini for similar reasons in April.
- The state says prediction markets are gambling because event outcomes are uncertain and based on chance.
- Kalshi’s spokesperson said shutting down the platform would push users to offshore sites and harm New Yorkers.
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