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 an unlicensed illegal gambling business.

The state says Kalshi lets users wager on uncertain events without the required gaming license, taxes, or age restrictions.

New York is seeking forfeiture of gains, consumer restitution, and civil penalties.

Kalshi and federal regulators argue prediction markets fall under CFTC oversight, not state gambling law.

The case could help determine whether prediction markets are treated as gambling or as regulated financial products nationwide.