New York sues Kalshi, alleges prediction market is illegal gambling
Summary
New York’s Attorney General sued prediction market company Kalshi, claiming it operates illegal gambling without a license. Kalshi says it is regulated by the federal government, but New York argues it breaks state gambling laws and could face fines up to $36 billion.Key Facts
- New York sued Kalshi for running an illegal gambling platform disguised as a prediction market.
- The lawsuit claims the outcomes are based mostly on chance, not skill.
- Kalshi states it deals in federally regulated contracts, which it calls derivatives.
- New York’s lawsuit says Kalshi violates laws on sports betting and underage gambling protections.
- The Commodity Futures Trading Commission wants a court to stop New York’s lawsuit.
- The suit demands Kalshi pay taxes, give up profits, and compensate users nationwide.
- Potential penalties for Kalshi could reach about $36 billion.
- New York officials say gambling laws protect consumers and fund public services.
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