Share 
New York sued prediction market platform Kalshi in state Supreme Court in Manhattan, alleging the company operated an illegal, unlicensed gambling business that included sports wagering.
Attorney General Letitia James and Gov. Kathy Hochul announced the case. According to the state, Kalshi did not obtain a license from the New York Gaming Commission and did not pay taxes like licensed casinos and mobile sports betting operators.
James’ office is seeking forfeiture of what it calls Kalshi’s illegal gains, restitution for harmed consumers, and fines equal to three times the company’s gains. State officials estimated the damages and costs sought at $36 billion.
The lawsuit also alleges Kalshi allowed users ages 18 to 20, while New York requires mobile sports betting users to be at least 21.
James said in a statement that “prediction markets like Kalshi are gambling platforms, plain and simple,” and said the company was “running an illegal operation and harming New Yorkers in the process.”
Kalshi disputed the case. Spokesperson Elisabeth Diana called the lawsuit “political theater” and said, “States can’t just shut down a federally licensed exchange.” She also said state action would hurt New Yorkers by driving them offshore.
The filing adds to a broader legal fight over whether prediction market platforms are governed by state gambling laws or by the U.S. Commodity Futures Trading Commission. The article said Kalshi and similar platforms offer trading tied to sports, politics, news and weather events.
New York’s Gaming Commission had already ordered Kalshi in October to stop what it called the illegal operation of an unlicensed mobile sports wagering platform in the state. Kalshi then filed a federal lawsuit against the commission and its members. That case was still pending, according to the source.
The dispute is part of a wider state-by-state battle. The source said a federal judge temporarily blocked Minnesota’s ban on prediction markets, and another federal judge had earlier temporarily halted Arizona’s effort to enforce gambling laws against prediction markets.
—
Source: As reported by wvnews.com.
