New York sues Kalshi, says its prediction markets are illegal gambling
The complaint seeks to stop Kalshi, recover profits and impose penalties that state officials estimate could reach $36 billion.
- On July 31, New York Attorney General Letitia James filed a lawsuit against Kalshi, alleging the prediction market platform operates an illegal gambling business in New York without proper licensing or taxes.
- The action marks a chapter in an expanding legal battle over whether states can regulate prediction markets under gambling laws or the Commodity Futures Trading Commission holds exclusive federal authority.
- Tarek Mansour, Kalshi's cofounder, compared the industry's regulatory scrutiny to early challenges faced by Uber and Airbnb, saying "That has played out over and over" with disruptive platforms facing "large lobbies" effective at blocking new competitors.
- Pendley noted prediction markets operate in a "gray area" between financial trading and gambling, with courts reaching conflicting conclusions about which law applies and raising accountability questions when platforms fail.
- Conflicting court decisions across the country leave the industry's future uncertain while the Commodity Futures Trading Commission continues defending its jurisdiction and seeking restraining orders to block state-level regulation.
237 Articles
237 Articles
Kalshi Sued by New York for USD 36 Billion Over Sports Betting and Prediction Markets
New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit in state court against the prediction market platform Kalshi for illegal sports gambling, seeking USD 36 billion. Kalshi called the lawsuit political theatre, defending its federally regulated status amid an ongoing state-federal regulatory battle. Kalshi Sued by New York for USD 36 Billion Over Sports Betting and Prediction Markets.
Black America Web
State Of New York Sues Kalshi, Frames Company As "Illegal"
Kalshi, a prediction market platform where users can bet on far more than sports outcomes, has come under fire in the state of New York. Last week, Gov. Kathy Hochul and AG Letitia James announced that the state is suing Kalshi, framing the company as an “illegal gambling” operation. The rise of Kalshi in recent times has been tied to several controversies, including gearing its platform for younger users, betting on the Gaza conflict, and bets …
Business Insider
BizTocKalshi CEO says lawsuits are the price of being a disruptor
Tarek Mansour, cofounder of Kalshi.IMFTarek Mansour, the cofounder of Kalshi, says the litigation his company is facing is just part of a cycle.Such litigation happens to market players that disrupt industries, he said.Mansour compared Kalshi to players like Uber and Airbnb, which also disrupted the transport and hotel industries.Kalshi's CEO says the scrutiny his company is facing is just part of a cycle that most disruptive startups must go th…
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