New York sues Kalshi over alleged 'illegal gambling operation'

New York Attorney General Letitia James has sued Kalshi, accusing the prediction market of operating as an unlicensed gambling platform.

The state wants Kalshi barred from New York and ordered to refund customers, saying residents including minors were exposed to financial risk.

The case adds to similar actions by other states and could help determine whether prediction markets are treated as state gambling operations or federally overseen financial products.

Kalshi argues the CFTC has federal authority over prediction markets, making the case important for Kalshi and similar platforms.