New York officials sue prediction market platform Kalshi for $36 billion, labeling it an illegal gambling operation.
New York officials filed a lawsuit in state Supreme Court in Manhattan against the prediction market platform Kalshi, seeking $36 billion in penalties and an injunction to halt its operations. Attorney General Letitia James and Governor Kathy Hochul characterized the platform as an illegal, unlicensed gambling operation that bypasses state regulations, specifically noting that Kalshi allows users as young as 18 to bet, while New York law requires a minimum age of 21. Kalshi officials, represented by spokesperson Elisabeth Diana, defended the platform as a federally licensed exchange where consumers trade against each other rather than against a house. The company argues that the federal Commodity Futures Trading Commission holds exclusive jurisdiction over these markets. This dispute reflects a broader conflict between states and the administration, as the federal government seeks to maintain oversight of the burgeoning industry while states attempt to assert their authority to regulate and tax prediction markets.