Letitia James sues prediction market platform Kalshi to block its operations in New York State.
New York Attorney General Letitia James filed a lawsuit against the prediction market platform Kalshi, seeking to halt its operations in the state and force the company to forfeit its profits. The lawsuit alleges that Kalshi is running an illegal, unlicensed gambling operation that exposes residents to financial risk, particularly those under the legal gambling age of 21. Letitia James argues that prediction markets are gambling platforms, plain and simple, and that Kalshi has failed to obtain a license from the state's Gaming Commission while skipping taxes paid by licensed casinos. Kalshi maintains that it is a federally licensed exchange and that states lack the authority to govern it. The company argues that prediction markets function more like stock markets where consumers trade against each other, rather than traditional gambling. This dispute highlights a user conflict between state and federal oversight, as the administration maintains that the Commodity Futures Trading Commission has exclusive jurisdiction over these markets. While some states have successfully sued Kalshi, the administration's appointee at the commission has stated that the agency will no longer sit idly by while states attempt to undermine its authority.