New York AG and Governor Target Kalshi as Illegal Gambling Platform
New York Attorney General Tish James, backed by Governor Kathy Hochul, has sued prediction-market operator Kalshi, labeling its business an illegal gambling operation.
Attorney General Tish James, with Governor Kathy Hochul’s support, filed a lawsuit accusing Kalshi of operating an illegal gambling hub by offering event-based contracts on topics such as a reality-TV season, political elections and major sports. The complaint demands that Kalshi obtain a New York gambling license and surrender billions in alleged unlawful profits. Kalshi argues it is a regulated futures market, not a casino, and that the suit would cripple its business model.
The company also notes it turned down a settlement that included revenue guarantees and consumer protections. While Kalshi questions why rival platform Polymarket was not named, officials point to similar actions against cryptocurrency exchanges Coinbase and Gemini. Critics suggest the move may reflect broader political pressures and industry lobbying in the state.
Why it matters
The case could reshape how prediction markets are regulated and impact billions in revenue for tech-focused betting platforms.
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