New York sues Kalshi, says its prediction markets are illegal gambling
The complaint seeks to stop Kalshi, recover profits and impose penalties that state officials estimate could reach $36 billion.
- On July 31, New York Attorney General Letitia James filed a lawsuit against Kalshi, alleging the prediction market platform operates an illegal gambling business in New York without proper licensing or taxes.
- The action marks a chapter in an expanding legal battle over whether states can regulate prediction markets under gambling laws or the Commodity Futures Trading Commission holds exclusive federal authority.
- Tarek Mansour, Kalshi's cofounder, compared the industry's regulatory scrutiny to early challenges faced by Uber and Airbnb, saying "That has played out over and over" with disruptive platforms facing "large lobbies" effective at blocking new competitors.
- Pendley noted prediction markets operate in a "gray area" between financial trading and gambling, with courts reaching conflicting conclusions about which law applies and raising accountability questions when platforms fail.
- Conflicting court decisions across the country leave the industry's future uncertain while the Commodity Futures Trading Commission continues defending its jurisdiction and seeking restraining orders to block state-level regulation.
244 Articles
244 Articles
Idaho Capital Sun
Kalshi is subject to Utah’s anti-gambling law, judge rules
In Kalshi's lawsuit against the state of Utah, a federal judge found federal commodities law does not override Utah’s anti-gambling mandates. (Photo by Anne-Marie Caruso/New Jersey Monitor) Utah may enforce its anti-gambling laws, even if they include bans of proposition betting, a federal judge ruled on Tuesday in response to a lawsuit from Kalshi challenging a new state law. The prediction market platform had described the law, which classifie…
Kalshi Sued by New York for USD 36 Billion Over Sports Betting and Prediction Markets
New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit in state court against the prediction market platform Kalshi for illegal sports gambling, seeking USD 36 billion. Kalshi called the lawsuit political theatre, defending its federally regulated status amid an ongoing state-federal regulatory battle. Kalshi Sued by New York for USD 36 Billion Over Sports Betting and Prediction Markets.
Black America Web
State Of New York Sues Kalshi, Frames Company As "Illegal"
Kalshi, a prediction market platform where users can bet on far more than sports outcomes, has come under fire in the state of New York. Last week, Gov. Kathy Hochul and AG Letitia James announced that the state is suing Kalshi, framing the company as an “illegal gambling” operation. The rise of Kalshi in recent times has been tied to several controversies, including gearing its platform for younger users, betting on the Gaza conflict, and bets …
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