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New York sues Kalshi over alleged unlicensed betting

The state says the prediction market took wagers without approval from regulators, escalating legal pressure on the company.

New York filed a lawsuit on Friday against Kalshi, accusing the prediction market company of operating an illegal gambling business in the state. Attorney General Letitia James said the firm accepted bets without a licence from the state gaming commission.

The complaint says Kalshi violated state gambling rules by offering wagering products without the authorisation required under New York law, according to the attorney general’s office. The filing adds to a growing set of legal challenges facing the company.

Kalshi has built a business around contracts tied to real-world events, a model that has drawn scrutiny from regulators and rivals over whether it should be treated as a betting platform. The case is the latest dispute over how prediction markets should be regulated in the United States.

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