New York sues Kalshi, says its prediction markets are illegal gambling
Attorney General Letitia James says the platform took sports and event wagers without a state license and sought triple damages and $100,000 fines per violation.
- On Friday, New York Attorney General Letitia James sued Kalshi, alleging the prediction-market platform operates as an unlicensed gambling business offering unauthorized wagers on sports, elections, and cultural events.
- Officials allege Kalshi allows users aged 18 to 20 to participate despite New York law requiring bettors to be at least 21. James argues the platform's contracts are "quintessentially gambling" because outcomes remain outside participants' control.
- New York Governor Kathy Hochul and James seek civil penalties equal to three times Kalshi's alleged gains, plus $100,000 for each unauthorized offer of sports or mobile sports wagering. The state also demands restitution to affected consumers.
- A federal appeals court cleared the path for the lawsuit on Wednesday by denying Kalshi's request to pause a lower court's ruling that New York's gambling laws apply despite federal regulation.
- James filed similar petitions in April against Coinbase Financial Markets and Gemini Titan. Prediction markets have soared in popularity since the 2024 election, sparking legal battles over whether states or the federal government should regulate the industry.
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189 Articles
New York sues prediction market platform Kalshi alleging ‘illegal gambling operation’ - WSVN 7News | Miami News, Weather, Sports
New York officials sued prediction market platform Kalshi for potentially billions of dollars on Friday, calling it an “illegal, unlicensed gambling operation” that includes sports...
New York is suing prediction market Kalshi, calling it an illegal gambling operation
In a statement, James said Kalshi violates New York's anti-gambling laws, which are designed to protect minors from betting and combat gambling addiction in adults. "No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple," she said, adding that Kalshi's actions are harming the...Read Entire Article
New York claims Kalshi let 18-year-olds bet when the legal age is 21, and now the state wants $36 billion in damages
New York has filed a massive lawsuit against the prediction market Kalshi, seeking $36 billion in damages and asking the court to shut the platform down entirely. The state filed the 32-page lawsuit in the state Supreme Court in Manhattan shortly after midnight on Thursday, arguing that Kalshi is operating an illegal gambling business. New York Attorney General Letitia James said in a statement that prediction markets like Kalshi “are gambling p…
New York Sues Kalshi, Estimating It Could Owe $36B
New York officials sued prediction market platform Kalshi for potentially billions of dollars on Friday, calling it an "illegal, unlicensed gambling operation" that includes sports wagering as the state seeks to halt its operations and force the company to forfeit its profits. New York joins a growing number of states...
NY sues Kalshi for running an ‘illegal gambling’ operation
New York state authorities sued the predictions-market company Kalshi Inc. for allegedly running an illegal, unlicensed gambling operation in the state, marking another legal hurdle for an industry that has won support from the Trump administration. The suit, filed Friday…
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