New York Sues Prediction Market Firm Kalshi for Illegal Gambling

The state of New York has sued Kalshi, alleging the prediction market firm is an illegal gambling operation. The lawsuit aims to stop the company from operating in the Empire State, pay restitution to residents who used the platform, forfeit any profits earned in New York, and pay fines three times the profits made in the state.

New York Attorney General Letitia James claims Kalshi put New York residents at risk by allowing 18-year-olds to use the platform, while the state’s legal age to gamble is 21.

Kalshi is based in New York, but the New York State Gaming Commission has not licensed it “in any capacity,” according to the lawsuit. Last fall, the commission ordered Kalshi to end what it termed as an “unlicensed mobile sports wagering platform.” Kalshi reaffirmed that assertion to CBS News after New York announced the lawsuit. Kalshi and other prediction markets have faced off in court over the last year as both plaintiffs and defendants. In May, Kentucky residents filed a class-action lawsuit against Kalshi, claiming the company is operating illegally in the state. The Ohio Casino Control Commission levied a $5 million fine against the company in April for offering sports contracts.