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New York sues Kalshi over unlicensed sports and event wagers
The lawsuit seeks to bar Kalshi from operating in New York and asks for triple the company’s gains, plus $100,000 per unauthorized or attempted wagering offer.
New York sued prediction market platform Kalshi, alleging it operates an unlicensed gambling business by offering sports and event wagers in the state, according to CoinDesk.
In a case filed in New York Supreme Court on Friday, New York Attorney General Letitia James said Kalshi’s event contracts are illegal bets, including markets tied to sports, elections and culture, and that the platform allows underage wagering.
The state is seeking a penalty equal to three times Kalshi’s gains from the activity, along with $100,000 for each unauthorized or attempted offer of sports or mobile sports wagering, and a full accounting of customer bets, losses and company profits.
Kalshi, along with the prediction markets sector, has faced similar legal challenges in other states, including a Minnesota ruling that granted a preliminary injunction to Kalshi and Polymarket after finding the state’s ban may conflict with the Commodity Exchange Act.