New York sues Kalshi over alleged illegal gambling
New York filed a lawsuit against Kalshi, alleging the prediction market platform operates an illegal unlicensed gambling business.Summary
New York Governor Kathy Hochul and Attorney General Letitia James have filed a lawsuit against Kalshi, a prediction market company. The state alleges that Kalshi has been operating an illegal online gambling business by allowing users to wager on sports, elections, and other uncertain events without a state license. By operating without a license from the New York State Gaming Commission, the company allegedly avoids the regulations and taxes required of licensed casinos and sports betting operators.
The lawsuit seeks to halt Kalshi's operations in New York, recover alleged illegal profits, and impose civil penalties equal to three times the company's gains. Additionally, officials claim Kalshi allows users aged 18 to 20 to participate, violating New York's minimum age requirement of 21 for mobile sports wagering. The state maintains that these laws are essential to protect consumers and fund public programs through tax revenue.
(Source：Rochester Democrat and Chronicle)