New York Sues Kalshi Over Alleged Illegal Gambling Operation
New York State has filed a lawsuit against Kalshi, accusing the prediction market of operating an illegal gambling business. The state alleges the company is violating laws by accepting wagers without proper licensing.
New York Attorney General Letitia James has sued Kalshi, a platform where users can trade contracts on future events. The lawsuit claims Kalshi is violating state laws by operating as an unlicensed gambling enterprise.
The Attorney General's Office (OAG) alleges that Kalshi exposes New York residents, including those under the legal gambling age of 21, to significant personal and financial risks.
The state is seeking a court order to block Kalshi, which is headquartered in New York, from operating within the state and to compel the company to pay restitution.
Kalshi is the only regulated exchange in the United States that allows trading on future events and has received approval from the Commodity Futures Trading Commission (CFTC).