New York alleges Kalshi running illegal gambling operation

The state of New York sued Kalshi on Friday, accusing the prediction market of running an illegal gambling operation. The lawsuit alleges the company is operating a gambling business in “flagrant disregard” of Empire State laws, failing to get a license from the state gaming commission and skirting related taxes. It al

A growing number of U.S. states are seeking to crack down on prediction markets, but face pushback from federal regulators.

New York Attorney General Letitia James (D) sued prediction market platform Kalshi on Friday, accusing the federally regulated exchange of operating an illegal gambling business in the state, escalating a growing legal battle over whether prediction markets fall under state gambling laws or exclusive federal oversight.

A tangle of lawsuits is growing as states try to use their gambling laws to shut down Kalshi, Polymarket and other prediction market operators

The lawsuit, filed by Attorney General Letitia James, alleges Kalshi has been offering New Yorkers illegal gambling products without a state license.

It comes after a federal judge earlier this month denied Kalshi's attempts to intervene against the state's Gaming Commission.

New York officials have sued prediction market platform Kalshi, calling it an “illegal, unlicensed gambling operation” as the state seeks to halt its operations and force the company to forfeit its profits

New York sues prediction market platform Kalshi alleging ‘illegal gambling operation’  AP News

The company calls itself an “event contracts” exchange rather than a traditional sportsbook.

New York sues prediction market Kalshi alleging it’s an illegal gambling operation  CNN

New York sues Kalshi, says its prediction markets are illegal gambling  Reuters