New York Alleges Kalshi Is Running An 'Illegal Gambling Operation' In New Lawsuit

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

The state says Kalshi lets users bet on uncertain outcomes without a gaming license, tax compliance, or age rules required under state law.

New York is seeking to shut the business down, recover profits, refund consumers, and impose triple damages.

Kalshi faces similar challenges in other states, while the CFTC continues to argue prediction markets fall outside state gambling authority.