New York has sued prediction market operator Kalshi over allegations that it is operating as an illegal, unlicensed gambling business.
New York Governor Kathy Hochul and Attorney General Letitia James announced the lawsuit against the company, which allows users across the US to wager on the outcome of sports events and markets linked to elections, culture, and other public events.
The Office of the Attorney General said its investigation found that Kalshi’s prediction markets met the state’s legal definition of gambling as they involve uncertain outcomes that are outside the bettor’s control. The lawsuit adds that Kalshi has operated without a license from the New York State Gaming Commission and without paying the relevant gambling taxes.
